Bed Bath & Beyond Owner Beyond Slashing 20% Staff to Save Costs
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Bed Bath & Beyond Owner Beyond Slashing 20% Staff to Save Costs

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Bed Bath & Beyond owner Beyond is cutting 20% of its workforce to save costs of up to $20 million annually. 

Bed Bath & Beyond owner Beyond Inc. (BYON) is slashing staff by 20% to strengthen its finances and enhance operational efficiency. Beyond, previously Overstock, is an e-commerce retailer with a focus on home essentials. As part of the workforce reduction, Beyond also terminated Chief Product Officer Carlisha Robinson, effective today, without specifying any reason.

The company has undertaken this step after a thorough review of its expense structure, with an intention to align with its technological strength. The layoffs will drive annualized savings of $20 million in fixed expenses and bring into line its asset-light business model. A majority of the reductions will take effect in the fourth quarter of 2024. Beyond also owns other brands and intellectual property (IP) rights of Overstock, Baby & Beyond, and Zulily among others. Overstock acquired the IP assets of Bed Bath & Beyond for $21.5 million in June 2023, when the latter filed for bankruptcy.

Bed Bath & Beyond to Return to Physical Format

Beyond is hoping to bring back the charm of the Bed Bath & Beyond physical stores to local neighborhoods. Last week, Beyond announced that it was investing $40 million in the Container Store Group (TCS) to display Bed Bath & Beyond’s kitchen, bath, and bedroom offerings in its stores. The items will be co-branded and marketed within a few sections of the Container Store Group locations.

Moreover, Beyond entered into a strategic partnership with Kirkland’s Inc. (KIRK) on Monday. As part of the deal, Kirkland’s will be the exclusive brick-and-mortar store operator for smaller Bed Bath & Beyond locations across the U.S. The two companies will leverage each other’s strengths to enhance their offerings. Beyond will help Kirkland’s digital transformation, while the latter will improve Beyond’s supply chain and physical store management efficiencies.

Beyond’s Q3 Results Expected Soon

Beyond is expected to release its Q3 FY24 results before the market opens on October 24. The Street expects the company to report to post an adjusted loss of $0.77 per share on revenues of $352.77 million. In the comparative prior-year period, Beyond reported an adjusted loss of $0.61 per share on revenues of $373.31 million.

Is Beyond a Good Stock to Buy?

Analysts remain divided on Beyond stock’s trajectory owing to steadily declining sales and rising losses. On TipRanks, BYON stock has a Moderate Buy consensus rating based on two Buys versus four Hold ratings. Also, the average Beyond price target of $15.80 implies 55.5% upside potential from current levels. Year-to-date, BYON shares have lost 63.3%.

See more BYON analyst ratings

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