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Stock Alert: Wayfair Falls 14%

Shares of furniture retailer Wayfair Inc. (W) were down $13.52 or 14.13% on Thursday after reports that the company is cutting jobs. The stock closed the day's trade at $82.16.

Wayfair in a statement said Thursday that it is going to cut 550 or 3% of its workforce.

"We find ourselves at a place where we are, from an execution standpoint, investing in too many disparate areas, with an uneven quality and speed of execution," chief executive Niraj Shah was quoted as saying in an e-mail to employees. "Through two years of aggressive expansion, we no doubt built some excess, inefficiency, and even waste at times, in almost every area."

Wayfair shares have been trading in a range of $78.61- $173.72 in the past one year and shed more than 15% in the past four trading sessions.

During the past three quarters in 2019, loss per share had been widening despite steady revenue growth.

In October, when the company reported third-quarter results, adjusted loss per share was $2.23 compared with loss per share of $1.28 in the comparable quarter last year. Revenue for the quarter had risen to $2.305 billion from $1.706 billion in the same quarter a year ago.

Fourth-quarter results are expected to be published on February 28.

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