: Wayfair to cut 1,750 jobs to save $750 million a year, and stock rallies

Shares of Wayfair Inc. W jumped 5.1% in premarket trading Friday, after the online home furnishings seller said it was laying off 1,750 employees, or 10% of its workforce, as part of a cost-cutting plan. The company said the jobs cuts will include 1,200, or 18%, of corporate employees, as it looks to eliminate management layers. Wayfair expects to record charges of $68 million to $78 million, mostly in the first quarter, for severance and benefit costs. The company expects to save $750 million a year from the job cuts, including cash and stock-based compensation, while the total cost-cutting plan looks to cut $1.4 billion in costs a year. The stock, which dropped 10.0% amid a three-day losing streak through Thursday, has run up 21.0% over the past three months while the S&P 500 SPX has gained 6.4%.

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