Massive Layoffs, Store Closures For This Minneapolis Bed Company
You're probably very familiar with this company and more than likely you've heard of them through the many celebrity endorsers they've had over the years. So, that may make it surprising that this Downtown Minneapolis based bed company has just announced massive layoffs and store closures.
Sleep Number has been in operation under that name since 2017. Before that they were known as Select Comfort from 1987 - 2017.
Sleep Number recently announced it will will be reducing it's operating expenses by $50 Million in 2024. That will include a reduction of their global workforce by 10%, which they detailed in their 3rd Quarter 2023 results to equate to 500 employees being laid off globally.
Also from their 3rd Quarter 2023 results report available on their website:
We are rationalizing our store portfolio with a planned closure of 40 to 50 stores by the end of 2024, along with slowing the rate of new store openings and remodels, and also reducing our 2024 capital expenditures.
The company has over 600 stores globally and 16 in Minnesota. 11 of the Minnesota stores are located within the Twin Cities metro. They have not released which stores will be closing only that it will be 40 - 50 of them.
As for the layoffs, you may be wondering just who that will affect. They said in their 3rd Quarter 2023 results report, "The cost restructuring actions are broad-based and include a reduction in headcount across all areas of the organization, including in corporate and R&D functions."
Bring Me the News reported that Sleep Number CEO Shelly Ibach saw a 30% salary reduction in 2022 from the year before, putting her at $6.7 Million in compensation.
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