Wayfair Inc. announced its decision to exit the German market, effective January 10, 2025, resulting in the layoff of 730 employees, approximately 3% of its global workforce. This strategic move aims to reallocate resources to areas with stronger long-term potential.
CEO Niraj Shah stated that scaling market share and improving unit economics in Germany proved challenging due to weak macroeconomic conditions, lower brand awareness, and limited scale. The company concluded that achieving market-leading growth in Germany was a long and costly endeavor.
The restructuring is expected to incur costs between $102 million and $111 million, primarily for employee-related expenses and facility closures, to be incurred across Q4 2024 and Q1 2025. Wayfair plans to reinvest savings into core initiatives such as physical retail expansion and growth in the U.K., Canada, and Ireland.
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