Chewy, the online pet supply store, has confirmed the layoff of over 200 employees across various departments as part of a strategic restructuring
Chewy, the online retailer specializing in pet supplies, has undergone a significant workforce reduction, resulting in the layoff of more than 200 employees.
The company, known for its 2017 acquisition by PetSmart at a valuation of $3.35 billion, has confirmed the layoffs, which affected various roles across multiple locations, including its headquarters in Plantation, Florida, as well as other offices in Boston, Minneapolis and Bellevue.
While Chewy confirmed the layoffs, specifics regarding the impacted job roles were not disclosed.
Reports from sources suggest that the affected positions spanned departments such as HR, recruiting, data, business intelligence and included high-ranking personnel, including directors and a Vice President.
Discussion forums like Blind indicate that the headcount reduction amounted to approximately 220 people, involving roles in engineering, development, product management, and supply chain operations.
Chewy, addressing the layoffs, stated that the restructuring aimed to streamline operations and focus on priorities that would yield significant customer benefits and optimal business returns in the upcoming year.
Diane Pelkey, a spokesperson for Chewy, emphasized the difficulty of the decision, underscoring its alignment with the company’s broader strategy to enhance agility and discipline.
The statement also expressed gratitude towards the affected team members, with a commitment to support them during the transition period.
The severance package for the impacted employees reportedly includes a minimum of one month’s severance, with additional weeks based on tenure.
Chewy’s recent financial performance revealed an unexpected profit of 4 cents per share in the most recent quarter, accompanied by a revenue of $2.78 billion.
However, concerns were raised among analysts regarding the decline in active users on the e-commerce platform, dropping from 20.49 million in the previous year to 20.39 million.
Chewy CEO Sumit Singh attributed some of the challenges to the impact of inflation on consumer behavior.
He noted a shift in consumer mindset, with heightened caution leading to the purchase of lower-priced items, such as dry dog food, and a reduction in spending on pet treats. Singh linked this change in behavior to broader economic factors, including inflation, affecting the pet industry.
Chewy, which was acquired by BC Partners and later went public in 2019, has faced challenges, and earlier in 2023, an advocacy group requested the Department of Labor to investigate BC Partners’ boards over concerns about overlapping directors sitting on both PetSmart and Chewy boards despite the split.
BC Partners, a major shareholder in Chewy, had previously split up PetSmart and Chewy but retained a significant stake in Chewy’s business.
