Bed Bath & Beyond Inc. announced on Thursday a strategic restructuring program that will rid the company of $85 million in general expenses by simplifying its operational model.
The Union-based retailer said the program includes the reorganization of its field operations, reducing its management positions and outsourcing several functions.
Starting immediately, Bed Bath said it has begun eliminating approximately 500 roles.
“We are announcing extensive changes today to right-size our organization as part of our efforts to reconstruct a modern, durable business model. We do not take this action lightly but, while difficult, these measured and purposeful steps are necessary. This will reset our cost structure, allowing us to re-invest where it matters most to our customers, to re-establish our authority in the Home space,” Mark Tritton, CEO and president, Bath & Beyond, said.
As part of the initiative, Bed Bath will:
- Simplify and remove layers of management;
- Remove duplicative or redundant roles;
- Reduce and realign regional zones; and
- Outsource several functions.