Wayfair Stock Surges as the Home Goods Retailer Cuts 1,650 Jobs

Wayfair ( W ) shares skyrocketed over 10% in early trading Friday after the home goods retailer slashed jobs in an effort to cut expenses.

Wayfair said it was laying off 1,650 employees, about 13% of its global staff, and approximately 19% of its corporate team.

The company said the decision came after it completed “a comprehensive, organization-wide analysis of the appropriate team size and structure.” Wayfair added that the cuts are expected to deliver $280 million in annualized savings.

CEO Niraj Shah wrote in a letter to employees that after a boom in business during the COVID-19 pandemic, the company “went overboard” in corporate hiring, and has already had two restructurings since the summer of 2022 to “try to right-size this.”

He said steps being taken now “reflect a return to our core principles on resource allocation, such as getting fit on spans and layers as well as focusing on our highest priorities.”

Shah said that he was “increasingly focused on generating Adjusted EBITDA in excess of equity-based compensation as well as capital expenditures,” adding that he intended to move quickly to “drive meaningful improvements” at the company.

The move follows similar job cuts by retailers Etsy ( ETSY ), and Macy’s ( M ). Wayfair said it anticipates the layoffs will result in $70 million to $80 million in costs in the current quarter.

Shares of Wayfair were up 10.1% at $56.04 per share as of about 10:45 a.m. ET Friday. They have gained more than 44% over the past year.