As a part of the overhaul that is being overseen by new Bed Bath & Beyond CEO, Mark Tritton, the company is planning to cut roughly 500 jobs in the wake of decreasing sales.
They anticipate to incur net pretax charges amounting to US $ 26 million, mainly related severance and associated costs, which will be expensed in its fourth fiscal quarter.
However, the brand will save an estimated US $ 85 million on expenses annually.
Tritton, who was poached from Target to be the company’s CEO, has in his four months at Bed Bath & Beyond, completely restructured the company for a more focused goal to win back its leadership in the Home space.
Also he laid off most of the C-level management of the company, sold the online personalisation platform Personalization.com and announced a US $ 1 billion spending plan.
As a part of the plan, US $ 400 million has been dedicated to store remodeling and supply chain upgrade, while US $ 600 million will be spent on debt restructuring and share repurchases.
In a statement, CEO Mark Tritton averred “These measured and purposeful steps are necessary, although difficult, and we do not take this action lightly. This will improve our cost structure, allowing us to re-invest where it matters most to our customers, to re-establish our authority in the Home space.”
Previously, the company had announced its plans to close down around 60 retail outlets in total, across formats after 14 stores went out of business last year. 20 of the 40 Bed Bath & Beyond stores, slated for closure, are to remain open for the first half of 2020.