Wayfair Lays Off More Than 300 Employees in Favor of A.I.

Wayfair has slimmed down its digital footprint by eliminating more than 300 jobs.

But with the elimination of so many jobs actually comes a lot of money lost for the brand. Just to lay off nearly 350 employees, it will cost the online retail giant $38 million.

It's a hidden cost that is often overlooked. When a large company has mass layoffs, it doesn't always save money immediately — in cases like this, it will bleed some money before actually starting to see returns from the changes.

That will cover severance packages and healthcare coverage for the discharged employees all the way through the end of the year.

Basically, Wayfair is shuttering some of its digital space in favor of artificial intelligence. According to Retail Dive, the company also said it will be harnessing generative A.I. to drive productivity and efficiency.

In February of 2025, Wayfair also launched Muse, a generative A.I. tool that allows consumers to be inspired by A.I. imagery and shop for recommended products from the retailer.

While the company is reducing the human assistance on the corporate side, it is beefing up the customer experience on the retail end of things.

If you have ever shopped at Wayfair, you know that they have great deals on things because there is no actual retail space, so they can offer those savings to you.

You can get anything shipped from Wayfair to your home, and now, with the added help of their Muse A.I. platform, seeing things on you and in your room before you purchase them will be an even better experience for all.