Sleep Number cuts 10% of workforce nationwide, plans store closures after down 3Q
Minneapolis-based Sleep Number is cutting jobs and planning for some store closures after a difficult third fiscal quarter.
The company announced the news Tuesday, just over five weeks after the end of the quarter, which saw the company’s sales drop 13% from a year ago.
In response to the quarterly results, a Sleep Number spokesperson confirmed to 5 EYEWITNESS NEWS that the company reduced its workforce by about 500 people, or 10%. Sleep Number isn’t providing any more details regarding who is affected by the cuts, only saying they are company-wide.
Additionally, the company announced other restructuring actions to reduce costs on Tuesday, including a plan to close 40 to 50 stores by the end of 2024 and slow its new store openings and remodels. It’s not yet clear which stores may be shuttered or when those closures could start.
“The third quarter was challenging for Sleep Number and the bedding industry as the consumer demand trajectory changed abruptly midway through the quarter,” Sleep Number President, CEO and Chairperson Shelly Ibach said in a statement. “In response, we acted quickly to further reduce costs, recalibrate our sales and marketing approach, and amend our credit agreement to provide additional covenant flexibility through the end of 2024. We expect these actions and broad-based restructuring initiatives to result in a more durable operating model with improved profitability and cash flows in a range of economic environments. We remain confident in our strategic direction and ability to deliver superior value creation over time.”
The company, which opened its first retail location back in 1992, currently has around 675 stores across the country and celebrated assembling 1 million smart beds this year.