Wayfair is cutting 550 jobs

Shares of Wayfair fell 10% Thursday after the online retailer announced it will shed 550 jobs, which is 3% of its workforce.

The company, based in Boston, said the move will help it lower costs.

“We continually evaluate the needs of the business and work to increase efficiencies,” a spokesperson said. “We are continuing to hire for the many roles needed to drive our long-term success.”

The cuts were first reported by The Boston Globe.

Sales growth at Wayfair has slowed down in recent quarters. The company has also had to deal with higher costs on importing furniture and home goods from China.

Wayfair’s stock has dropped 20% over the past year. The company has a history of losses, in part because of the high costs of shipping bulky furniture.

“Management is now much more constructively reviewing the company’s business model and cost infrastructure,” Oppenheimer analyst Brian Nagel wrote in a note to clients Thursday.

Wayfair is the latest retailer to announce job cuts. Macy’s said last week that it will eliminate 2,000 jobs and close 125 stores over the next three years, while Kohl’s announced Wednesday that it will slash 250 jobs.