Wayfair cuts 340 tech employees after completing platform upgrades
Wayfair has eliminated 340 technology-related jobs and closed its Austin-based technology development center after completing a five-year tech upgrade.
BOSTON — Wayfair Inc. has cut 340 members from its technology team, citing the company’s efforts to reshape, streamline and refocus its technology organization after completing its modernization and replatforming milestones.
The reorganization is expected to cost Wayfair between $33 million and $38 million in employee-related costs, including severance, benefits and transition costs. The majority of the cash payments are expected to be made over the next 12 months.
In the near term, Wayfair expects the elevated transition costs will largely offset the structural savings from the technology reorganization. However, the company expects to realize savings from the reorganization in the second half of the year and continuing into 2026.
In a blog post, the company noted it embarked on a major transformation to modernize its technology stack over the past five years, including replatforming and migration to the cloud. “This journey required significant investment, dedication and collective effort of our talented technology teams,” the post said.
“With the foundation of this transformation now in place, our technology needs have shifted. To best support Wayfair’s next phase of growth, we must refocus our resources, steamline our operations and ensure our teams are structured for long-term success.”
Along with the dismissal of 340 employees, the company said it is streamlining its technology development center (TDC) footprint by closing its Austin hub. TDCs will remain in Seattle; Mountain View, Calif.; Toronto; Boston; and Bengaluru, India.
The blog noted the company “will continue to invest aggressively in technology with our team of over 2,500 technologists helping us advance retail innovation.”
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