Online furniture seller Wayfair is preparing to lay off more than 1,000 workers, adding the company to a growing list of firms that are scaling down as pandemic-driven changes in consumer behavior dissolve.

The Wall Street Journal says the it’s another example of how the turnaround in retail supply chains over the past year is getting more painful for e-commerce businesses. Wayfair’s restructuring marks its second round of layoffs in six months and is expected to affect more than 5% of its workforce. 

Wayfair, Amazon, Peloton Interactive and other companies saw business surge but are now slashing jobs. The company, like many firms, aggressively added staff in recent years as it expanded warehouse operations and became a hub for a work-from-home population during the height of COVID lockdowns. But sales contracted 13% during the first nine months of 2022 and Wayfair is looking for $500 million in annualized cost savings.