This story was originally published on Retail Dive. For daily news and information, subscribe to our free Retail Dive daily newsletter.
As Bed Bath & Beyond works to become an “AI-focused business,” CEO Marcus Lemonis warned that the growth of AI, both within its own business and overall, will result in job cuts.
“Unfortunately, I have to be brutally clear and honest with everyone, both internally and externally. With AI forming out of our business and now deeply integrated into our business, and we only want to take on capabilities that we believe add value, we are going to experience a significant reduction in headcount,” Lemonis said on a call with analysts on Monday.
Areas affected could include supply chain, IT, accounting, marketing and merchandising. In some cases, those jobs will be redeployed to other parts of the business, including increasing customer service and store staff.
“We are going to become an organization that puts its payroll in the field, that puts its payroll generating income and does not put its payroll in corporate offices with large leases and many warehouses,” he said.
The company has suffered several rounds of layoffs in recent years as it works to turn around the business and cut costs. While Lemonis said “those decisions weren’t always immediately visible in the numbers,” the company is now starting to see the financial impacts.
On Monday, the company reported that first-quarter net revenue increased nearly 7% year over year to $248 million, marking the first quarter of “significant revenue growth” in 19 quarters, though it’s also the first quarter in which Kirkland is officially in the fold. Losses narrowed in the period, with the operating loss improving more than 20% to $18.2 million and the net loss improving nearly 60% to $16.4 million.
“Our first quarter results show that the work we have been doing to stabilize and rebuild the business is taking hold,” Lemonis said in a statement. “We delivered real year-over-year revenue growth, something we haven’t seen significantly in several years, while continuing to take costs out of the business and operate more efficiently.”
The company has also undergone significant leadership changes this year, most recently with the appointment of Kyla Robinson as chief technology transformation officer. Robinson will report to President Amy Sullivan.
In his role, Robinson will focus on building a unified technology and data platform across all aspects of Bed Bath & Beyond’s business, including omnichannel retail, home services, product ecosystem and financial capabilities.