Bed Bath and Beyond to cut 7% of corporate staff, eliminate operating chief role

Bed Bath and Beyond announced on Tuesday that as part of its efforts to reduce costs, it will cut its corporate staff by 7% and eliminate the chief operating officer role.

As part of this decision COO Eugene Castagna, who also held the title of the president, will leave the company. The stock was down 1% after the news. 

“While decisions that impact our staff are difficult, today’s action is an important step in simplifying our corporate structure and ensuring our resources are aligned with the business we are managing today,” said Bed Bath and Beyond’s interim CEO Mary Winston. “We remain confident in the underlying business and our ability to leverage the strength of the Bed Bath & Beyond brand and our lasting connection with customers to deliver on our near-term priorities and transform the Company.”

A trio of activist investors have been pushing for changes at the company since March, and have made efforts to replace its entire 12-person board by leveraging their stakes. Legion Partners Asset Management, Macellum Advisors and Ancora Advisors have a collective 5% stake in the company, and the big-box retailer has fallen behind as more customers turn online shopping. 

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