Bed, Bath and Beyond is cutting 500 jobs, or around 10% of its corporate workforce, from its company as a part of a new restructuring effort put in place by recently appointed CEO Mark Tritton.

Tritton, who became the CEO after briefly working as Target Corp.’s chief merchandising officer, said that this is part of an effort to “right size” the company, as the restructuring will reduce the chain’s expenses by around $85 million annually.

“We are announcing extensive changes today to right-size our organization as part of our efforts to reconstruct a modern, durable business model,” Tritton said in a statement to the press.

“We do not take this action lightly but, while difficult, these measured and purposeful steps are necessary. This will reset our cost structure, allowing us to re-invest where it matters most to our customers, to re-establish our authority in the home space.”

The goal is to remove duplicative jobs and positions and to get rid of some of the middle layers of store management, presumably, in part, because a smaller staff is always easier to manage than a larger one. Bed, Bath & Beyond will also be outsourcing some positions to help cut costs.

The home products chain employs about 55,000 to 60,000 people depending on the shopping season.

Of the jobs that will be eliminated in this restructuring effort, about 350 were from the corporate offices of the company’s Union, New Jersey headquarters and 120 that the field level. This New Jersey site employs roughly 3,000 workers.

“We are experiencing short-term pain in our efforts to stabilize the business, including the pressures of store traffic trends coupled with our own executional challenges,” Tritton said in his statement. “I believe we can solidify this growth, while also addressing the broader stabilization of our business.”

Tritton said that he expects the company to “incur net pretax charges of about $26 million, mainly for paying out severance and related costs, which will be expensed in its fiscal fourth quarter,” according to an article from CNBC.

Other recent changes that Tritton had announced to the Bed, Bath & Beyond chain are that the company would be spending around $400 million in store remodels and supply chain upgrades, and another $600 million on share repurchases and debt reduction.

Additionally, Tritton announced that Bed, Bath & Beyond will be focusing more on baby, home and beauty products.

In a move to reverse waning sales, the company also sold its smaller PersonalizationMall.com business, which sold gifts for holidays and birthdays, to 1-800-Flowers.com for $252 million.

In the past 12 months, shares for Bed, Bath & Beyond have dropped more than 35% and will most likely keep dropping as U.S. consumers deal with the coronavirus spreading throughout the country.