Wayfair lays off 13% of its workforce weeks after telling employees to work harder::Wayfair is laying off 1,650 employees, amounting to 13% of its global workforce, as the online home goods retailer struggled to rebound following its success amid pandemic lockdowns.
Shares of Wayfair (W) soared nearly 16% in premarket trading.
Close call! I thought the poor shareholders would be affected. All is good in the world again.
You do know a majority of investments are people’s retirement savings? Pension providers compete with each other to offer the best returns, moving to the shares that offer the best outlook for dividends and growth; we are the snake eating its own tail. If you want to one day save up for retirement, you are are a part of this.
I’d suggest you look into that a bit closer.
Some investments are pensions, but generally they are buying solely on metrics. It’s also worth noting they’re focused on the long term. Pension funds line bonds, indexes and long term stocks.
The money moving quickly and affecting value day to day, week to week, even quarter to quarter is the rich trying to extract a quick buck.
Pension funds are increasingly likely to be holding the bag on a company that the short termists have eviscerated these days.
If you really care about pensions you’d be in favour of massive market reforms to slow trading and promote companies long term health.
I think I understand it well enough already.
I AM in favour of massive market reforms that removes definitely HFT and probably a lot of day trading too. I don’t think it benefits anyone - I know some traders argue it prevents inefficiencies in the market but I am convinced it does more harm than good. Minimum holding periods are fine by me. But you and I both know that some pension funds hold Wayfare - and pension funds will eventually trade, maybe on lower frequency, and make choices based on companies’ performance. Of course Wayfare has to keep their margins in that game.
Wayfair has not been traded significantly by pension funds because it has not been a significant stock for long enough.
There may be some index linked investments which have pulled in Wayfair stock, but those will be treated as a whole and will be designed to be less risky.
It is a bad thing when stock value can be manipulated upwards by layoffs. It’s usually a sign the company is doing worse than they expected, their growth has reached a limit, so logically their long term forecasts should decrease.
But the market recognises their short term balance sheet has just seen an improvement and the short term money moves in. Ready for the ultimate buy out of a company that’s reached the peak of growth, so the main owners are ready to sell to a larger company.
Hopefully at an inflated market rate because short term decisions are being made to make the company look better to an algorithm.
Pension providers compete with each other to offer the best return
Boy do I have news for you. Most retail investora want flashy charts, and they will pay higher fees to see them. They have no idea what they are charged or how it affects their returns.
What does that have to do with my argument?
I get extra money, I buy shit I don’t want to budget for. That’s furniture for a lot of people. Also we’re hitting the point where people are finding out just how shitty their stuff is because they’ve owned it a couple years.
We’re hitting the point where people are finding out just how shitty their stuff is because they’ve owned it a couple years.
I think this is the big thing. My (now) wife and I moved in together in summer 2019. We bought just about everything we needed on Wayfair. Coffee tables, book shelves, lamps, tons more.
We owned literally none of it by end of 2022.
Glad it isn’t just me. I got a cutting board there less than a year ago and it’s already splitting quite badly.
I guess they worked 13% harder
Not surprising considering Wayfair’s products are a pile of hot garbage.
Guess they didn’t work hard enough /s
This is the best summary I could come up with:
Wayfair is laying off 1,650 employees, amounting to 13% of its global workforce, as the online home goods retailer struggled to rebound following its success amid pandemic lockdowns.
Wayfair had flourished at the beginning of the pandemic, when demand for swanky furniture and other home decor upgrades was so hot that it helped bottleneck global supply chains and caused lengthy shipment delays.
Inflation has left high prices in its wake, and middle-income shoppers have pulled back their discretionary purchases to focus on paying for necessities like groceries, gas and rent.
Wealthier customers have shifted their spending from furniture and other goods to travel and services, and mortgage rates remain high, cutting into demand for new homes.
Late last year, Wayfair’s Shah garnered attention for his blunt year-end letter to his employees telling them to blend work and life together.
I believe that most of us, being ambitious individuals, find fulfillment in the joy of seeing our efforts materialize into tangible results,” Shah said in a note to employees earlier this month celebrating the company’s recent success.
The original article contains 429 words, the summary contains 175 words. Saved 59%. I’m a bot and I’m open source!
