Online home goods company Wayfair is slashing its workforce by 340 tech employee positions, the company has announced.
This marks the second round of layoffs that Wayfair has initiated since 2025 began. Back in January, the ecommerce retailer cut 730 jobs in the process of exiting its Germany operations.
The company has positioned its new job cuts as a streamlining move, designed to deliver “long-term success.”
What to Know About the Wayfair Layoffs
The 340 lost positions will come as the company closes its Technology Development Center located in Austin, Texas.
Wayfair will be keeping open its other locations, which include four centers based out of North America (Seattle, Mountain View, Toronto, Boston), as well as one in Bengaluru, India.
“To best support Wayfair’s next phase of growth, we must refocus our resources, streamline our operations, and ensure our teams are structured for long-term success,” the company said in a news bulletin on its website.
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Wayfair Is “Leveraging Generative AI”
Those of you playing “tech layoff bingo” at home might be wondering if Wayfair has mentioned AI in their layoff announcements. They did.
In a discussion of the ways the company is “harnessing technology” amid its layoffs, Wayfair’s announcement mentioned “advancing personalization and simplifying navigation,” before broaching the topic of AI.
“Additionally, we are leveraging generative AI to boost productivity across our organization, ensuring efficiency and innovation at every level. Together, these advancements empower us to fulfill our brand promise—making it easy for our customers to create a home that is just right for them.” – Wayfair spokesperson
It’s still too early to say whether AI can truly deliver on the lofty promises that many VCs and tech CEOs have issued over the past few years, but it’s already clear that those promises have led to a shakeup in the labor market as executives everywhere feel empowered to lay employees off under the assumption that AI can replace their efforts.
Tech Layoffs Continue
The news from Wayfair is hardly surprising. Ever since late 2022, the tech industry has been continually laying off workers. We’ve charted the biggest layoffs across that time period in a constantly updated list.
It seems 2025 will be a tough year for many businesses, with a second Trump administration triggering market volatility due to an uncertain economy.
The impact of AI-spurred layoffs will make the labor market even weaker. In fact, adding some insult to injury, one way businesses are adapting is the use of AI in filtering through the resumes of tech workers hoping to rebound after their previous layoff.
