The next steps in Bed Bath & Beyond Inc.’s restructuring plan include the elimination of 2,800 jobs, the Union-based retailer announced this week.
The company, which has been grappling with the effects of the COVID-19 pandemic on the retail industry like so many peers, said in a news release Tuesday night that the structural realignment could result in annual savings of about $150 million. When combined with previously announced restructuring plans, the resulting improvement in earnings — before interest, taxes, depreciation and amortization, or EBITDA — could reach $250 million to $350 million, excluding one-time costs, over the next two to three years, it added.
“Saying goodbye to colleagues and friends is incredibly difficult, but this component of our comprehensive restructuring program is critical to rebuild the foundation of our business, construct a modern, balanced and durable business model, and meet the structural shift in customer shopping and service preferences that we have seen accelerate as a result of COVID-19,” CEO and President Mark Tritton said in a prepared statement. “Today’s action forms part of a series of changes we are making to reduce the cost of our business, further simplify our operations and support our teams so we can emerge from the pandemic in an even stronger position.”
The job cuts include positions at the corporate headquarters and at retail stores nationwide, and are effective immediately. It said the changes will streamline corporate structure as well as repositioning field operations and other teams to better serve the digital-first shopping environment brought on by the coronavirus.
Bed Bath also said the realignment will simplify operations, support growth investment and provide financial flexibility as it adjusts to the post-COVID world with increased store pickup and online initiatives.
“We have made significant progress this year, and these purposeful interventions are designed to allow us to maintain our financial flexibility and reinvest where it matters most to our customers and our people,” Tritton said. “As we work to reestablish our authority in home, baby, beauty and wellness, we are encouraged by the strong customer response to new services such as (buy online, pick up in store) and curbside pickup, and the continued strength in our digital channels as we improve the curation of our product assortment, enhance the ease and convenience of the shopping experience and make it easier to feel at home.”
It was not immediately clear how many jobs would be eliminated at the company’s Union base, or in New Jersey retail locations.