Wayfair Cuts 340 Tech Jobs in Push for AI

Wayfair eliminated 340 technology jobs on Friday. The online furniture giant says it is closing its Austin, Texas, engineering hub to focus on artificial intelligence and cloud computing. This move marks the company’s third major round of cuts in three years.

Key Facts

• The Cut: 340 technology and engineering roles.
• The Location: The Austin Technology Development Center will close.
• The Cost: Wayfair expects to spend between $33 million and $38 million on severance and benefits.
• Source: Wall Street Journal, Retail Dive

The AI Pivot

Wayfair says its move to cloud servers is finished. Now, the company wants to use AI to do more work with fewer people. In a statement, Wayfair claimed its new systems allow it to run leaner teams. This fits a growing pattern where companies replace human engineering roles with automated tools.

Austin Shut Down

The cuts hit the Austin office the hardest. Wayfair is closing that location entirely. The company confirmed it will keep its other technology centers in Boston, Toronto, and Berlin open for now. Workers in Austin will lose their local base as the company consolidates its workforce.

A History of Cuts

This is not the first time Wayfair has slashed its headcount. In January 2024, the company cut 1,650 jobs, or 13% of its staff. That followed a similar cut of 1,750 jobs in January 2023. CEO Niraj Shah has pushed staff to work harder and fix the company’s finances, but the layoffs continue to roll in year after year.