As Bed Bath & Beyond works to turn itself into an “AI-centric business,” CEO Marcus Lemonis warned that the growth in AI, both within its own business and more broadly, will result in job cuts.
“I have to be, unfortunately, brutally clear and honest with everybody, both internally and externally. With the formation of AI outside of our business and now being deeply integrated in our business, and us only wanting to take on capabilities that we think add value, we're going to experience significant reduction in headcount,” Lemonis said on a call with analysts Monday.
Areas impacted could include supply chain, IT, accounting, marketing and merchandising. In some cases, those jobs will be redeployed elsewhere within the business, including by increasing customer service and store staff.
“We are going to become an organization that puts its payroll in the field, that puts its payroll generating revenue and does not put its payroll in corporate offices with big leases and lots of warehouses,” he said.
The company has undergone several rounds of layoffs in recent years as it works to turn around the business and cut costs. While Lemonis said “those decisions were not always immediately visible in the numbers,” the company is now starting to see the financial impacts.
The company on Monday reported first quarter net revenue increased nearly 7% year over year to $248 million, marking the first quarter of "significant revenue growth” in 19 quarters, though it is also the first quarter with Kirkland's officially in the fold. Losses narrowed in the period, with operating loss improving over 20% to $18.2 million and net loss improving nearly 60% to $16.4 million.
“Our first quarter results show that the work we’ve been doing to stabilize and rebuild the business is taking hold,” Lemonis said in a statement. “We delivered real year-over-year revenue growth, something we haven’t seen meaningfully in several years, while continuing to take costs out of the business and operate more efficiently.”
The company has also seen significant C-suite changes this year, most recently with the appointment of Kyla Robinson to chief technology transformation officer. Robinson will report to President Amy Sullivan.
In the role, Robinson will focus on building a unified tech and data platform across all aspects of Bed Bath & Beyond’s business, including omnichannel retail, home services, product ecosystem and financial capabilities.
She has over 15 years of experience leading digital commerce and tech organizations, including from Nike, Walmart, Saks Fifth Avenue and most recently Spanx, where she oversaw digital commerce, product, engineering and customer experience for the brand’s DTC business.
“Kyla is a proven technology and product leader who understands how to translate data and AI into real customer outcomes,” Sullivan said in a statement. “As we build Everything Home, this is about creating one system that understands the customer, the home, and what comes next.”
At the start of the year, Lemonis stepped into the CEO role after serving as Bed Bath & Beyond’s executive chairman and principal executive officer. At the same time, the company’s former chief operating officer, Alexander Thomas, was terminated after less than a year in the role.
The company’s acquisitions of Kirkland’s, which closed in the first quarter, and The Container Store, which is still pending, have also resulted in significant executive shuffling.
Container Store Chief Financial Officer Brian LaRose has replaced Adrianne Lee as Bed Bath & Beyond’s CFO. Lisa Foley, who was chief marketing officer, is now chief operating officer. And Anders Hahn, previously Elfa president, will become Elfa CEO.
