Wayfair plans to cut some 870 jobs (around 5% of its global workforce), in a bid to reduce operating expenses and adjust investment priorities.

The etailer says the layoffs will cost it $30-$40m in expenses, the bulk of which will be incurred in Q3.

The move is in response to a market downturn which has muted anticipated growth. Wayfair did not specify where the redundancies would be made.

Earlier this month, Wayfair reported its worldwide results for Q2 (ended 30th June, 2022).

Total net revenue was $3.3b, down $573m (or -14.9% YoY). US net revenue was $2.8b, down $302m (or -9.7% YoY), while international net revenue was $0.5b, down $271m (or-35.7% YoY).

Wayfair achieved a gross profit of $896m (or 27.3% of total net revenue), yet suffered a net loss of $378m (non-GAAP adjusted EBITDA was down -$108m).

Upon Friday's announcement, Wayfair's share price tumbled by a fifth.