Quick Facts
- CEO Marcus Lemonis announced AI-driven layoffs across supply chain, IT, accounting, marketing and merchandising roles
- Company posted $248 million in Q1 revenue, up 7% year-over-year, marking first growth in 19 quarters
- Stock jumped 25% in extended trading following earnings announcement and strategic AI transformation plans
Bed Bath & Beyond CEO Marcus Lemonis announced plans for significant layoffs as the company transforms into an AI-centric business. The announcement came despite the retailer posting its first quarterly revenue growth in nearly five years.
“We’re going to experience significant reduction in headcount,” Lemonis said during the company’s first-quarter earnings call. He identified supply chain, IT, accounting, marketing and merchandising as areas most likely to face cuts.
The layoffs represent a strategic shift toward automation and AI integration. Lemonis emphasized the company plans to redeploy some positions to revenue-generating roles including customer service and store staff.
“We are going to become an organization that puts its payroll in the field, that puts its payroll generating revenue and does not put its payroll in corporate offices with big leases and lots of warehouses,” he said.
The announcement came alongside strong financial results. Revenue reached approximately $248 million, up 7% year-over-year, marking the first growth in 19 quarters. Adjusted EBITDA improved by $5 million and net losses decreased by $24 million.
Bed Bath & Beyond stock surged 25.47% to $6.70 in extended trading following the earnings report.
The company hired Kyla Robinson as Chief Technology Transformation Officer to lead the AI integration. Robinson will build a unified technology platform connecting retail, services, and financial capabilities.
Lemonis plans to eliminate $60 million in costs, calling this estimate “very conservative.” He aims to achieve a 6% to 7% EBITDA margin through operational efficiency gains.
This marks the second major round of layoffs for the company. In October 2024, Beyond Inc. cut 20% of its workforce, reducing annual fixed costs by $20 million.
The current Bed Bath & Beyond operates as an online-only retailer after Beyond Inc. acquired the brand from bankruptcy in 2023. The company has focused on rebuilding operations and reducing costs over the past two years.
Recent acquisitions of Kirkland’s and pending purchase of The Container Store support the company’s “everything home” strategy. The integrated approach combines commerce, services, insurance, and financing into a single AI-powered platform.
Read more: Bed Bath & Beyond CEO: AI will lead to ‘significant reduction in headcount’
