To maintain business! Bed Bath & Beyond begins a new round of layoffs to save costs!

Bed Bath & Beyond is on the verge of bankruptcy due to declining sales and increasing losses. The company's store shelves are becoming increasingly empty as suppliers demand advance payments, stop shipments or change other payment terms. Bed Bath issued a "business as usual" warning last week, saying its capital chain is facing unprecedented pressure. Bed Bath & Beyond has begun its latest round of layoffs in order to maintain its business.

The home furnishings retailer decided to cut spending after reporting disappointing third-quarter results. In an email to employees, CEO Sue Goff said the company is cutting jobs "across our corporate, supply chain and store portfolio." He did not say how many employees would be affected but said it was necessary to ensure Bed Bath's future.

According to a company filing, Bed Bath had about 32,000 employees as of February 26, 2022. But since then, the company has reduced its headcount. In August, Bed Bath laid off about 20% of its corporate and supply chain employees and closed about 150 offline stores.

Bed Bath has made progress in reducing operating expenses and plans to cut another $80 million to $100 million in costs, including layoffs.

"As our strategic direction changes and we streamline operations, the size of our organization needs to be right-sized to ensure we are ready for the future. Unfortunately, this requires making the difficult decision to say goodbye to some of our colleagues," the statement read.

The retailer has been working with advisers in recent months to avoid filing for bankruptcy if its financial situation deteriorates. Bed Bath initially worked with Berkeley Research Group but recently chose to replace the firm with AlixPartners, people familiar with the matter said.

The company referred to Goff's earlier comments: "We have a team, both internal and external, with extensive experience helping companies successfully navigate complex situations and emerge stronger. Multiple avenues are being explored, and we are determining our next actions thoroughly and in a timely manner." We will continue to pay attention to what the future holds for Bed Bath.

Editor ✎Estella/

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