Bed Bath & Beyond owner to lay off 20% of its workforce
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- Bed Bath & Beyond's owner said in a regulatory filing that it would cut one-fifth of its workforce.
- Beyond Inc., formerly known as Overstock, bought the brand last year after it went bankrupt.
- It said the cuts would support the online-only retailer's "affinity and data monetization model."
The parent company of Bed Bath & Beyond plans to lay off one-fifth of its workforce in a move to save $20 million a year.
Beyond Inc., formerly known as Overstock, said in a regulatory filing on Tuesday that the cuts would "align to its asset-light business that supports an affinity and data monetization model."
In September, the company announced that it had reached a deal to sell its Utah headquarters. Its chief financial officer, Adrianne Lee, said in a statement on Thursday that the two measures were expected to reduce the annual budget by $65 million.
"As we continue to transform and build out our model, we intend to monetize data through our enhanced CRM and database capabilities, stand up a global loyalty program across both our owned and partnered brands, and leverage our IP through a variety of global licensing partnerships," Dave Nielsen, the company's president, said in the statement.
On Monday, Beyond and Kirkland's Home announced a $25 million deal to open 15,000-square-foot small-format "neighborhood" Bed Bath & Beyond locations across the US. The companies said the concept would include an assortment of classic BB&B products.
Overstock bought the Bed Bath & Beyond intellectual property last year after the original housewares retailer went bankrupt, turning the former big-box brand into an online-only operation.
The $21.5 million deal covered trademarks, internal business data, and e-commerce platforms including websites and apps, but no physical stores or inventory.
The company said at the time that the addition of Bed Bath & Beyond loyalty-program shoppers tripled Overstock's existing customer base.
Since renaming itself to Beyond last year, the company has managed to grow customers by 21%, but sales have suffered, with delivered orders declining by 19% in the third quarter.
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