Wayfair to Cut 340 Tech Jobs Amid AI and Cloud Transition

Wayfair is set to lay off 340 tech employees as it shifts its technology resources to a cloud-computing environment and incorporates generative AI to boost productivity, according to The Wall Street Journal. The Boston-based company announced that this move is part of a broader effort to modernize its operations over the past five years.

The layoffs will include the closure of Wayfair's Technology Development Center in Austin, Texas. Despite the immediate costs associated with these changes, which are expected to range between $33 million and $38 million, Wayfair anticipates realizing cost savings starting in the second half of 2025 and continuing into 2026.

Wayfair stated that the restructuring is necessary to support its next phase of growth, ensuring that its teams are structured for long-term success. The company will continue to invest in technology to enhance the customer shopping experience, leveraging generative AI to improve productivity and efficiency.