Online pet food retailer Chewy Inc. plans to cut hundreds of jobs in Dallas.
The pet-focused retailer notified the state that it plans to reduce activity at its fulfillment center in Dallas, with 674 jobs to be cut starting May 10, reported Dallas Business Journal. Employees at the distribution center located on the city’s southwest side, near Grand Prairie and Mountain Creek Lake, will not enjoy bumping rights, a provision that enables senior employees to take the position of newer workers under certain circumstances.
The fate of the distribution center at 7243 Grady Nible Road remains unclear. So far, the company has not indicated what motivated the cutbacks.
In 2023, Chewy initiated a previous round of layoffs that impacted around 200 jobs in multiple locations, including at the company’s Plantation, Florida headquarters. The cuts affected human resources roles, data and business intelligence jobs, and some senior leadership positions.
Chewy, Inc., which trades under the ticker CHWY on the New York Stock Exchange, has seen its stock price surge over the past year. Shares of CHWY have appreciated more than 97% in the past 12 months, compared to the much more modest 10% increase experienced by the S&P 500.
However, the company’s shares have also seen significant volatility.
Chewy got caught up in the so-called meme-stock movement last year after being highlighted by the group’s unofficial leader, Keith Gill, better known as Roaring Kitty. After social media got wind of Gill’s purchase of Chewy shares last year, the company saw its price taken on a roller coaster ride.
Chewy was founded in 2011 and has an extensive catalog of around 115,000 pet-focused products. The company is headquartered in Boston and Plantation and has customer service centers in Richardson and Dallas.
In 2017, PetSmart purchased the e-commerce company for $3.35 billion. However, in 2020, private equity firm BC Partners split the merged companies back into two separate entities in a deal valued at $6 billion.