In an announcement by CEO Satish Malhotra, The Container Store revealed plans to eliminate open positions and reduce its workforce by approximately 15% at its support center, as well as less than 3% at the company’s store and distribution center operations.

While The Container Store did not reveal the exact number of employees impacted by recent measures, CEO Malhotra acknowledged the difficulty of the decision during an earnings call with analysts. He emphasized the importance of implementing immediate cost management strategies. 

Malhotra conveyed optimism regarding the company’s prospects of achieving its long-term goal of $2 billion in sales and keeping operating margins in the low double digits. He also expressed confidence in the company’s strong foundation and capable teams that are in place to drive progress toward meeting these objectives.

According to the company’s most recent annual report, The Container Store employs approximately 5,200 employees. Out of this total, around 4,800 employees are associated with The Container Store segment, while the remaining 400 employees are part of the Elfa segment.

The company’s latest earnings report revealed a decline in net sales for the fourth quarter, with a year-over-year decrease of 15% to $259.7 million. Additionally, comparable sales experienced a decline of 13.1%. The company reported a net loss of $189.3 million for the quarter, in contrast to a $23.2 million income reported in the previous year. Net sales were down 4.3% to $1 billion for the entire year, while comparable sales decreased by 3.7%.

Analysts suggest that with Bed Bath & Beyond undergoing Chapter 11, retailers such as The Container Store have an opportunity to gain market share. 

In response, The Container Store recently announced a promotion allowing shoppers to use Bed Bath & Beyond coupons until the end of May 2023.

It is worth noting retail giants like Big Lots, Walmart, Target, and Amazon have already been drawing sales away from the now-bankrupt Bed Bath & Beyond.