Why Wayfair Stock Popped Today

Shares of home-furnishing e-commerce company (NYSE: W) popped on Friday after it announced it was cutting 13% of its global workforce. As of 10:10 a.m. ET, Wayfair stock was up 11%.

Wayfair CEO Niraj Shah summed up the problem by saying, "The reality is that we went overboard in hiring during a strong economic period." For an example of a strong economic period, consider that the company's revenue jumped from $9.1 billion to $14.1 billion in 2020. It built up its workforce too much as sales boomed and now has to course-correct.

To be clear, Wayfair has already been course-correcting. In August 2022, the company laid off 5% of its workforce. Then, in January 2023, it laid off another 10%. Apparently, the previous cuts didn't go far enough, motivating it to let go of more people today.

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Source Fool.com