Bed Bath & Beyond has reduced its corporate workforce 7% as part of what company officials said is the retailer’s on-going effort to reset its cost structure.
As part of this realignment, Eugene Castagna, president and chief operating officer, departed the company on Tuesday, July 23, and the position has been eliminated.
Company officials said the cuts follow a “comprehensive and careful review” of its corporate office cost structure, which has resulted in corporate staff reductions including vice presidents, directors, managers and professional staff.
“As we reset our approach to the business transformation underway, we are executing against four key near-term priorities including resetting the cost structure,” said Mary Winston, interim CEO, and member of the board of directors of Bed Bath & Beyond. “While decisions that impact our staff are difficult, today’s action is an important step in simplifying our corporate structure and ensuring our resources are aligned with the business we are managing today.”
According to the company, the organizational changes are estimated to generate future annual pre-tax net savings of approximately $30.7 million. Due to the timing of these changes, the pre-tax net savings for the remainder of fiscal 2019 are estimated to be approximately $18.9 million.