Wayfair, the online home goods retailer, is pulling out of the German market, a decision that will affect 730 jobs, or about 3% of its global workforce. The company has been operating in Germany for 15 years, but it only accounts for a “low single digit percentage” of Wayfair’s revenue, customers, and orders. The restructuring will cost between $102 million and $111 million, with $40 million to $44 million in employee-related costs and $62 million to $67 million in non-cash charges for facility closures. These costs will be spread over the next 12 months, with payments expected in the fourth quarter of 2024 and the first quarter of 2025. Wayfair plans to reinvest the savings into its physical retail expansion and other international markets. The company’s shares fell about 3% in early trading following the announcement. Despite the layoffs, Wayfair’s focus is shifting towards initiatives with higher returns, such as physical retail, where it has already seen a “halo effect” on online sales near its first store outside Chicago.
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