Bed Bath & Beyond job cuts include COO
Bed Bath & Beyond Inc. continues its ongoing turnaround efforts with a cost-saving workforce reduction that includes some high-level executive roles.
The beleaguered home goods company said Tuesday that it has reduced the corporate workforce at its Union, N.J., headquarters by about 7%, including vice presidents, directors, managers and professional staff. As part of the realignment, Eugene A. Castagna, president and chief operating officer, has left the company, also as of Tuesday, and the role of COO has been eliminated. Job cuts were also made at select locations where corporate associates were employed.
The retailer estimates that the organizational changes will yield future annual pre-tax savings of $30.7 million. For the remainder of fiscal 2019, the savings is forecast to be about $18.9 million. The company expects to incur a restructuring charge of about $12 million in fiscal 2019. Bed Bath & Beyond said it will continue to review its cost structure to identify additional cost-savings opportunities.
“While decisions that impact our staff are difficult, today’s action is an important step in simplifying our corporate structure and ensuring our resources are aligned with the business we are managing today,” said Mary A. Winston, interim CEO and board member. We remain confident in the underlying business and our ability to leverage the strength of the Bed Bath & Beyond brand and our lasting connection with customers to deliver on our near-term priorities and transform the company.”
Bed Bath & Beyond recently reported a net loss of $371.1 million, or $2.91 a share, for the quarter ended June 1, compared with net earnings of $43.6 million, or $0.32 cents, in the year-earlier period. After adjusting for an impairment charge as well as severance and other costs, Bed Bath & Beyond posted earnings of $0.12 cents a share. Net sales fell 6.6% to $2.57 billion. Same-store sales were down 6.6%.
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