Fresh off telling investors last week that it may consider a bankruptcy filing, Bed Bath & Beyond has kicked off a fresh round of layoffs.
In a statement, the company said Tuesday it would be “necessary to right-size” the company as it seeks to turn around its business.
“Unfortunately, this has necessitated making the difficult decision to say goodbye to some of our colleagues,” it said.
CNBC was first to report the layoffs after obtaining a company memo to employees that said the cuts would be “across our corporate, supply chain and store portfolio.” An exact number of layoffs was not stated.
Bed Bath & Beyond is also eliminating the role of chief transformation officer, CNBC reported.
Last Thursday, Bed Bath & Beyond issued a “going concern” warning as it faced the prospect of a critical cash shortfall. It said it would seek to address the crunch it by exploring options, including a Chapter 11 bankruptcy filing.
Doing so would bookend a tumultuous post-pandemic period for the company that saw it get caught up in the meme-stock frenzy, where day traders and other amateur investors speculated on ostensibly troubled companies turning around. In the case of Bed Bath & Beyond, after hitting a pandemic low of about $4 in April 2020, company shares spiraled upward to as much as $35 in the summer of 2021.
Today, the company’s shares are worth about $2.
Bed Bath & Beyond has also faced tragedy in the death of its chief financial officer Gustavo Arnal in September, in what was ruled a suicide.
On Tuesday, the company reported quarterly results that showed same-store sales had fallen 32%.