Investing.com -- On March 7, 2025, Wayfair Inc . (NYSE: NYSE: W ) reported a reduction of about 340 members from its Technology team. This move is part of the company’s efforts to streamline and refocus its Technology organization, following the completion of significant modernization and replatforming milestones.

The company expects to incur charges between $33 million and $38 million, primarily due to cash employee-related costs such as severance, benefits, and transition costs. The majority of these cash payments are expected to be made over the next 12 months.

In the short term, Wayfair anticipates that the transition costs will largely offset the structural cost savings from the Technology reorganization. However, the company expects to gradually realize savings from the reorganization starting in the second half of 2025, and building into the start of 2026.

These projections are subject to a number of assumptions, and actual charges and results may vary significantly from estimates. The company also notes that it may incur charges and expenditures not currently contemplated due to unforeseen events that may occur in connection with the reorganization.

On the same day, Wayfair issued a blog post relating to the Technology reorganization. The company stated that over the past five years, it embarked on a significant transformation to modernize its technology stack, including a comprehensive replatforming and migration to the cloud.

With the completion of this transformation, Wayfair’s technology needs have shifted. To best support its next phase of growth, the company has decided to refocus its resources, streamline its operations, and ensure its teams are structured for long-term success. This includes the closure of the Austin Technology Development Center (TDC), with the Seattle, Mountain View, Toronto, Boston, and Bengaluru TDCs remaining as key centers of innovation.

Wayfair expressed appreciation for the contributions of those affected by the workforce reduction and committed to supporting them with a comprehensive support package.

Looking ahead, Wayfair reaffirmed its commitment to technological excellence and plans to continue investing in cutting-edge solutions to improve its platform, enhance the shopping experience, and drive business growth. The company intends to leverage technology to inspire and guide its customers, advance personalization, simplify navigation, and boost productivity across the organization through generative AI.

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