Bed Bath & Beyond CEO sends stark AI warning to workers

Bed Bath & Beyond Inc. is trying to become a one-stop shop for home essentials, but its comeback plan could come with a warning for workers.

The company, which owns Bed Bath & Beyond, Overstock, buybuy BABY, and Kirkland’s, is building what CEO Marcus Lemonis calls an “Everything Home” platform. 

The goal is to serve customers across the full homeownership journey, from furniture and decor to storage, flooring, cabinets, installation, financing, and home services.

That strategy is being powered by acquisitions, customer data, and artificial intelligence. But on the company’s latest earnings call, Lemonis made clear that the same technology meant to make Bed Bath & Beyond faster and more profitable could also reduce the need for some employees.

Bed Bath & Beyond sees progress

Bed Bath & Beyond is showing signs that its turnaround is beginning to work.

In its recent Q1 2026 earnings report, the company reported revenue of about $248 million, up 7% year over year, or 9.4% when excluding discontinued Canadian operations. 

Lemonis said it marked the company’s first year-over-year revenue growth in 19 quarters, while operating costs reached their lowest level in more than 12 years.

Wall Street is noticing the progress. Wedbush raised its price target on Bed Bath & Beyond to $8 from $7 and maintained an Outperform rating, saying the quarter confirmed that the company’s stabilization plan is beginning to translate into top-line growth.

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The firm also expects at least $40 million in annualized cost savings and productivity efficiencies within 12 to 18 months of full integration.

But those savings may come with a labor tradeoff.

Lemonis, during the company’s earnings call, told analysts that Bed Bath & Beyond expects to remove another $60 million in costs from the consolidated company over the next nine months as it folds in new businesses and improves efficiency.

He then connected the company’s AI push directly to staffing.

“With the formation of AI outside of our business and now being deeply integrated in our business and us only wanting to take on capabilities that we think add value, we’re going to experience significant reduction in headcount,” Lemonis said.

The CEO said some workers could be redeployed into areas such as customer service, stores, design, and home services, which he thinks are “under-nurtured.”

But he also said the company wants more payroll tied to revenue-generating field roles, not corporate offices, large leases, and warehouses. And Lemonis was direct about which areas would be first in the steps to eliminate supply chain costs.

“We will be eliminating IT, accounting, marketing, merchandising, et cetera, across the entire platform,” Lemonis said.

 Dominick Miserandino, CEO of RTMNexus.com, said Bed Bath & Beyond is becoming a clear example of how AI could reshape corporate work.

“Bed Bath & Beyond is becoming a case study for the 2026 workforce: if your job can be described by a flowchart, an AI is coming for your desk. Lemonis is forcing a legacy brand to move at the speed of a startup, but he’s doing it by hollowing out the middle class of his own company.”

Bed Bath & Beyond’s stock is up 41% over the year.

Photo by Bloomberg on Getty Images

The Container Store becomes part of the plan

The warning comes as Bed Bath & Beyond tries to become much more than a traditional retailer.

Lemonis has described the home as a life cycle, not a single transaction. On the earnings call, he said homeowners typically remain in their homes for about 11 to 12 years, creating opportunities for the company to serve them as they move in, maintain and improve the home, finance it, and eventually move out.

The company’s strategy is built around three pillars: omnichannel retail, products and financial services, and home services.

A key piece of the strategy is the company’s push to use familiar retail brands in new ways.

Bed Bath & Beyond has announced deals involving Kirkland’s and The Container Store. It also plans to acquire F9 Brands, which includes Lumber Liquidators, Cabinets To Go, and Southwind Building Products. 

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Lemonis expects this acquisition to bring over $0.5 billion of revenue, in addition to increased warehouse and supply chain capabilities.

The company said customers will be able to access F9 products and services through the custom Spaces section of The Container Store, helping turn parts of the store fleet into home project centers where customers can design, buy, finance, and install home solutions.

“Each brand owns a distinct category – modular storage systems, custom closets, flooring, cabinets and countertops, carpet and hard surface flooring distribution – and together with our installation services and field sales organization, we can take the homeowner through the full lifecycle of a renovation, all under one platform,” said Lemonis.

The company is also trying to connect its brands through a shared customer identity and loyalty system.

Bed Bath & Beyond and Bilt announced a partnership to create a unified customer identity and loyalty platform across Bed Bath & Beyond, The Container Store, Kirkland’s, Overstock, and buybuy BABY. The goal is to recognize customers across brands and keep them within a single connected home ecosystem.

“Everything Home is about meeting customers where they are in life and staying relevant as their needs evolve,” said Lemonis. Adding that it requires a connected platform and “Bilt gives us the ability to recognize our customers, reward long-term engagement, and build lasting relationships across the full home journey.”

Bilt is a rewards and credit card program that lets homeowners and renters earn points on payments without a transaction fee.

Retail AI raises worker concerns

On the earnings call, Bed Bath & Beyond President Amy Sullivan said newly appointed CTO Kyla Robinson and COO Lisa Foley are building the “unified data and intelligence layer” that connects the company’s ecosystem and helps it scale.

That is where the worker risk becomes clearer. Bed Bath & Beyond is not just adding AI to customer-facing tools. It is using AI and data to consolidate how the business operates behind the scenes.

Bed Bath & Beyond is not alone in using AI to rethink staffing.

A Gartner survey found that 55% of supply chain leaders expect agentic AI to reduce the need for entry-level hiring, while 51% believe it will push companies toward broader workforce reductions. 

Still, AI’s impact on the job market remains complicated. Morgan Stanley said AI’s effect on labor markets has been modest so far, with little evidence of broad-based job losses.

“Measuring the impact of AI on labor is complex,” said Morgan Stanley Research Economist Diego Anzoategui. Further noting that “the same technology that automates tasks can also augment workers, increase productivity, and boost demand in AI-exposed sectors. So far, the fata suggest early, narrow displacement – more visible among younger workers – while overall disruption remains limited.”

Bed Bath & Beyond’s comments stand out because Lemonis is directly linking AI, cost reductions, and headcount changes.

For investors, the strategy could make the company leaner and more profitable. For customers, it could create one connected place for more home needs.

For workers, especially those in corporate and back-office roles, it may be an early look at where retail work is heading: fewer layers, more automation, and a sharper focus on jobs that directly generate revenue.

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