Wayfair has laid off 340 employees from its technology division and is shutting down its Technology Development Center in Austin, Texas.
The home goods retailer will continue operating its other tech hubs in Seattle, Boston, Mountain View, Toronto, and Bengaluru, India.
The layoffs follow the successful completion of several major technology initiatives over the past five years, according to the company.
Wayfair has been modernizing its infrastructure, transitioning to a cloud-based system designed for scalability and efficiency.
“This journey required significant investment, dedication, and the collective effort of our talented technology teams,” the company said in a statement.
“We now operate on a modern, scalable, and high-performance infrastructure designed to adapt to the evolving needs of our customers and business.”
The restructuring will cost the company between $33 million and $38 million in severance, benefits, and transition expenses, most of which will be paid out over the next year.
These figures exclude noncash charges related to equity-based compensation.
Wayfair said it remains committed to advancing its technology, with a focus on enhancing personalization and streamlining navigation to improve the customer experience.
The company is also leveraging generative AI to boost productivity. Last month, it introduced Muse, an AI-driven tool that generates visual inspiration and product recommendations for shoppers.
This is the second round of job cuts at Wayfair this year. In January, the company announced it was pulling out of Germany, affecting 730 positions, though roughly half were relocated to other corporate offices.
Wayfair has faced ongoing challenges as demand for home goods softens, though it recently narrowed its losses, with operating losses improving by 32% in its latest quarter.
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