Furniture giant Wayfair is laying off 1,650 team members globally — 13 per cent of its workforce — and employees in Canada have been affected.

Wayfair CEO Niraj Shah shared a long letter on Friday morning, stressing that this decision doesn't come from a loss. Wayfair is "consistently profitable" and "gaining market share at a fast pace," so there's another reason.

"The natural question is to ask 'why?' I think the reality is that we went overboard in hiring during a strong economic period and veered away from our core principles, and while we have come quite far back to them, we are not quite there," wrote Shah.

In an email, a Wayfair spokesperson confirmed that the layoffs have affected approximately 50 jobs in Canada — specifically in Ontario. The company has reported the number to the Ministry of Labour, Immigration, Training and Skills Development.

Shah explained in his letter that, in the past, Wayfair has taken important steps to position itself for the future but hasn't gotten where it needs to be.

He could be referring to other rounds of massive layoffs at Wayfair in the last couple of years.

In 2022, Wayfair laid off nearly 5 per cent of its workforce (870 workers). At the beginning of 2023, it laid off an additional 1,750 globally to reduce company costs. At the time, the figure represented 10 per cent of its workforce. The company was accused of "micro layoffs" in November last year.

When December 2023 rolled around, Shah sent a memo to Wayfair employees, encouraging them to work harder.

"Working long hours, being responsive, blending work and life, is not anything to shy away from," he said. "There is not a lot of history of laziness being rewarded with success."

The third quarter of 2023 brought Wayfair US$917 million in gross profit.

In Friday morning's update, North American Wayfair employees, which could include Canadian staff, were told they'd begin to receive emails about whether or not their role had been impacted. Wayfair's "talent partners" in Europe had already started conversations about the layoffs with affected staff when the letter went up.

Per Shah's letter, Wayfair is looking for a "clean organizational model that provides a healthy foundation to grow from" for its future.

"The best way to make sure everyone in the company can thrive and that we can do the most for our customers is to make sure that we make the right decision in terms of what our go-forward organization should look like," Shah said in the letter.

He thanked the 1,650 Wayfair team members being laid off for their contributions. "We know you will land in great roles given your strong skills and expansive experience, but this is still sad for everyone. You have so much to be proud of, and I truly regret the impact this will have on you."

Laid-off employees will be offered severance and support through Wayfair's employee assistance program resources and alumni network.

Shah has been with the organization since its inception. He co-founded it with Steve Conine in 2002.