Wayfair, an American furniture e-commerce company, suspends recruitment for 90 days to cope with economic changes

It is learned that on May 17, American furniture e-commerce Wayfair announced that it would suspend recruitment for 90 days, citing concerns about the economic slowdown and thus suspending its growth plans.

Online retailers such as Wayfair and Amazon have seen a sales boom due to COVID-19 restrictions and unprecedented fiscal stimulus measures. Wayfair's revenue soared 55% to $14.1 billion in 2020, but sales fell 3% in 2021 to $13.7 billion.

As the e-commerce boom brought on by the epidemic subsides and offline retail resumes, sales of online marketplaces such as Wayfair are also slowing down, and its stock price has fallen by more than 70% this year.

It's not just Wayfair. Many US giants have also begun to slow down their hiring amid the overall stock market decline fueled by concerns about rising inflation.

Twitter announced a hiring freeze last week, and Facebook-parent MetaPlatforms slowed hiring earlier this month to cut costs.

In a recent conference call with analysts to discuss earnings, Wayfair CEO Niraj Shah said consumers were less willing to buy due to rising prices across the retail industry and various geopolitical events.

Data showed that Wayfair lost $319 million in the first quarter, compared with a profit of $18.2 million in the same period last year. Revenue was $2.99 ​​billion, down 14%, and active customers decreased to 25 million, compared with 33 million a year ago.

For the current quarter, Wayfair said revenue is down more than a dozen times year-over-year so far, and the company said costs related to labor, energy and shipping will also weigh on margins.

Editor✎ Ashley/

Disclaimer: This article is copyrighted and may not be reproduced without permission.