Bed Bath & Beyond will reduce its workforce by about 10% as part of restructuring.

Bed Bath & Beyond (BBBY) - Get Report said Thursday it's cutting about 500 jobs, or 10% of its workforce, in an effort to reduce expenses by about $85 million annually as part of its restructuring plan.

Mark Tritton, Bed Bath & Beyond's president and CEO, said in a company statement, "We are announcing extensive changes today to right-size our organization as part of our efforts to reconstruct a modern, durable business model. 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 company said it is cutting management positions across its business and has additional plans to reduce costs over the longer term.

The company said it expects to incur net pretax charges of about $26 million, which will be expensed in its fiscal fourth quarter.

Shares dropped 3.02% Thursday to close at $10.28 as part of the broader equity selloff, and continued to decline in after-hours trade, slipping another 1.26%