Minneapolis, Minnesota-based Sleep Number, a manufacturer of Sleep Number and Comfortaire beds, foundations, and bedding accessories, has announced a restructuring, including management changes, a new cost containment initiative that will see the closure of 40 to 50 stores in 2024, and a 10% reduction in the company's workforce, including headquarters and R&D employees.
In another round of layoffs, 500 employees, or 10% of the workforce, is impacted.
According to the company's SEC filing, "Sleep Number has struggled in recent quarters amid slower consumer demand for its high-end mattresses. We have implemented a reduction in
the workforce across all areas of our business, including corporate and R&D. We don't take this action lightly, but we believe these reductions are important and necessary to align our cost structure with the ongoing challenging market conditions. We are rationalizing and optimizing our store portfolio in slowing the rate of new store openings and remodels, reducing our 2024 capital expenditures."
"Our restructuring actions include a reduction in workforce by around 10% or approximately 500 team members. We have been aggressively managing our costs, and this initiative is in addition to a significant reduction in headcount over the past 18 months. With the recent actions, we expect to enter 2024 with total team members 20% below 2021 levels and 5% below 2019 levels. We are also rationalizing our store portfolio to align with the current demand environment. Specifically, we expect to close 40 to 50 stores through 2024. While closing stores will create some demand pressure next year, we will minimize the impact by focusing on effective sales transfer, both digitally and to stores within the same markets."
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?