Formerly Bankrupt Retail Chain Owner Delivers Tough News to Employees

According to The Street, Beyond Inc., formerly known as Overstock, has been making substantial changes since it acquired home goods retailer Bed Bath & Beyond for $21.5 million in June 2023. The acquisition marked a new chapter for the brand, transforming Bed Bath & Beyond into an exclusively online retailer after the company had previously filed for Chapter 11 bankruptcy in April 2023. Facing $1.8 billion in long-term debt, Bed Bath & Beyond shuttered its physical stores, but Beyond Inc. is now investing to bring the brand back to brick-and-mortar locations.

Significant Investments with Major Retailers

In 2024, Beyond Inc. made two notable investments to reintroduce Bed Bath & Beyond products into physical stores. On October 15, Beyond Inc. entered a $40 million preferred equity agreement with The Container Store (TCS) to feature Bed Bath & Beyond products in 102 of its locations. In another strategic move, Beyond Inc. partnered with Kirkland’s (KIRK) to open five small-format Bed Bath & Beyond stores, where Kirkland’s will act as the exclusive operator and licensee.

Layoffs as Cost-Cutting Becomes More Common

Many companies have turned to mass layoffs to address financial strains, and Beyond Inc. is no exception. In 2024 alone, several high-profile companies announced significant layoffs, including Intel (INTC), which is cutting over 15% of its workforce, and Tesla (TSLA), which reduced its staff by 10% in April. Paramount Global (PARA) also announced a second round of cuts, reducing its workforce by 15%. Now, Beyond Inc. is joining this wave.

Beyond Inc. Announces Major Workforce Reduction

On Tuesday, Beyond Inc. filed an 8-K report with the U.S. Securities and Exchange Commission, announcing plans to reduce its workforce by 20% in the fourth quarter of 2024. According to the company, the layoffs aim to create a more sustainable cost structure, aligning with its vision to develop an affinity and data monetization model with a focus on technology. The reduction is expected to save Beyond Inc. around $20 million annually.

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One of the layoffs’ first casualties was Calisha Robinson, the recently appointed Chief Production Officer who had been hired in March to support the company’s transition to Beyond Inc. and oversee the Bed Bath & Beyond acquisition. Her departure marks a significant loss in leadership and expertise for the company.

Cost-Cutting Continues with Headquarters Sale

Beyond Inc. recently sold its corporate headquarters to Salt Lake County for $55 million on September 16, further demonstrating its efforts to streamline operations and reduce expenses. Despite significant investments in partnerships and brick-and-mortar expansions, the company’s financial position remains challenging, with recent measures indicating efforts to stabilize costs.

Market Reaction

Following the announcement of these cost-cutting measures, Beyond Inc. saw a sharp 31% drop in stock value as of Thursday’s market opening, reflecting investor concerns over the company’s financial health and recent operational decisions.