Wayfair founder Niraj Shah takes a selfie with state Sen. Smitty Pignatelli, left, and Congressman Richie Neal at the call center's opening in 2019.
PITTSFIELD, Mass. — Wayfair opened a $5 million call center in the Clock Tower Building three years ago with plans to bring 300 jobs to the city.
It was a pledge by Chairman and CEO Niraj Shah, a Pittsfield High graduate, to ensure his hometown benefited from his burgeoning home goods business.
Now the company is planning to close that center by July and shift its 40-person staff to virtual work.
Wayfair announced last Friday plans to layoff upwards of 1,750 employees, following 900 let go in August. The restructuring is expected to save the company more than $1.4 billion, some $750 million from reducing its global labor force by more than 10 percent of its 17,000 employees reported in August.
"Although difficult, these are important decisions to get back to our 20-year roots as a focused, lean company premised on high ambitions and great execution," said Shah in statement about the reductions. "The changes announced today strengthen our future without reducing our total addressable market, our strategic objectives, or our ability to deliver them over time.
"In hindsight, similar to our technology peers, we scaled our spend too quickly over the last few years. The good news for Wayfair is that we have operated in a highly productive and efficient way for the vast majority of our 20-year history, and we are now simply returning to that."
The company reported a 9 percent decrease year over year in total revenues for the third quarter and a net loss of s $283 million.
Susan Frechette, Wayfair's director of communications, confirmed that the company would be not be renewing its lease for the two-story Clock Tower space.
"Like many companies, we have seen an increase in employees effectively transitioning to remote work, driven in part by the COVID-19 global pandemic and cost savings efforts," she wrote. "Moving our customer service team to a virtual working model continues to allow us to best serve our customers while supporting cost saving efforts for the business."
Frechette said the company remains committed to Pittsfield and will continue to provide support to its employees in the region.
The opening of the call center was considered a major coup for the city and numerous public officials — including then Gov. Charlie Baker and Lt. Gov. Karyn Polito, and U.S. Rep. Richie Neal — attended the ribbon cutting.
If you would like to contribute information on this article, contact us at info@iberkshires.com.
Your Comments
iBerkshires.com welcomes critical, respectful dialogue. Name-calling, personal attacks, libel, slander or foul language is not allowed. All comments are reviewed before posting and will be deleted or edited as necessary.
Like Bed Bath and Beyond, Wayfair cannot compete with Amazon. Anything you can buy from Wayfair, you can probably get cheaper at Amazon. Also, Wayfair touts free shipping, but if you need to return something, you pay a fortune to ship it back. These are the reasons I stopped buying from Wayfair.
MIDDLEBOROUGH, Mass. – Brady Bouldry struck out nine and allowed three hits Saturday to lead the Middleboro Post 64 Juniors to a 2-0 win over Pittsfield Post 68 at the American Legion State Tournament.
Bouldry went the distance on the mound, walking two, to earn the tournament hosts a date with Swampscott Post 57 on Sunday night in the winners’ bracket of the double-elimination tournament.
Gavin O’Donnell tripled, and Ethan O’Donnell and Jason Codey each had a hit for Pittsfield.
The O’Donnell brothers also split time on the mound, striking out eight, walking two and allowing one earned run.
Post 68 plays Sandwich Post 188 on Sunday at 1 p.m.
It's a big year for Elder Services of Berkshire County as its 50th anniversary coincides with a move to a more modern, accessible office. click for more
On Monday, the Licensing Board approved a new annual downtown all-alcohol restaurant license for the eatery's new location in the former Trattoria Rustica at 27 McKay St.
click for more
Construction vehicles and piles of materials can be seen on the southern portion of the 237-acre park next to the pavilion. Plans include sediment removal, dam repair, and increased accessibility.
click for more