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Bed Bath & Beyond Lays Off Nearly 1,300 Employees in New Jersey

Retailer Eliminates Jobs at Headquarters, Several Warehouses
Bed Bath & Beyond is laying off 572 workers at a Prologis warehouse it leases space at in Port Reading, New Jersey. (CoStar)
Bed Bath & Beyond is laying off 572 workers at a Prologis warehouse it leases space at in Port Reading, New Jersey. (CoStar)
CoStar News
March 27, 2023 | 9:05 P.M.

Bed Bath & Beyond is laying off nearly 1,300 employees in New Jersey at its corporate headquarters and several warehouses as it cuts costs.

The Union, New Jersey-based retailer — owner of its namesake chain as well as Harmon and Buy Buy Baby — filed notifications about the layoffs with the New Jersey Department of Labor and Workforce Development. The Worker Adjustment and Retraining Notification, or WARN, notices relate to four sites, three for Bed Bath & Beyond and one for Harmon.

Bed Bath & Beyond earlier this year announced a dramatic number of store shutterings, including pulling the plug on its entire Harmon beauty goods chain in January, as it tried to get its financial house in order after burning through cash and having trouble getting wary vendors to ship it goods. At that time Bed Bath & Beyond said it expected to close about 300 of its namesake stores, to bring its fleet down to about 360 brick-and-mortar locations.

The retailer got a lifeline when it raised about $1 billion in a stock sale and was able to avert bankruptcy.

"As shared in our strategic update in February, we are moving expeditiously toward a smaller and more profitable store footprint and omni-always model. The difficult but necessary decision to reduce our workforce is one of many important actions we are taking to enable Bed Bath & Beyond to improve our financial position and serve our customers well into the future," Bed Bath & Beyond said in an emailed statement to CoStar News.

The biggest staff cuts, entailing 572 workers, are planned at a warehouse that serves stores and acts as an e-commerce fulfillment center that Bed Bath & Beyond has at 1001 W. Middlesex Ave. in Port Reading, New Jersey, according to one of the WARN notices. Bed Bath & Beyond leases 354,637 square feet at a 607,417-square-foot industrial facility that Prologis owns there, according to CoStar.

"Due to a variety of factors this facility is underutilized in the company's fulfillment network," the notice said.

New Labor Regulations

The retailer is also letting 377 employees go at its headquarters at 650 Liberty Ave. in Union, according to another WARN notice. Those layoffs are "due to a variety of factors" as "we are resizing our corporate workforce," the notice said. The job cuts include real estate managers, merchandising planners and managers, and tech engineers.

Another 262 workers will be laid off at the warehouse that served Harmon stores at 11 Taft Road in Totowa, a WARN notice said.

"Due to discontinuing the retail operations at one of the company's brands this distribution network will no longer be utilized," according to a WARN notice.

And at a Bed Bath & Beyond warehouse at 3 Enterprise Ave. N in Secaucus there are 84 people losing their jobs. "Due to store closings within the organization this distribution network will no longer be utilized," a WARN notice said.

The retailer filed its layoff notifications before a new labor law in New Jersey takes effect, which is on April 10. That regulation mandates that companies with 100 or more employees issue notices 90 days rather than the current 60 days before plant closings or mass layoffs. The changes also mandate that New Jersey employers must provide affected employees with severance pay equivalent to one week of pay for each full year that they worked, even if the employer complies with the law’s notice requirement in a timely fashion.

"As a result, New Jersey is now one of the very few states to require 90 days’ advance notice of mass layoffs or operations-driven terminations and to force employers to pay such employees severance," the law firm Squire Patton Boggs said in a blog post.

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