Wayfair withdraws from Germany: 730 jobs in danger!

Wayfair, the furniture dealer, has announced that he is withdrawing from the German and Austrian market. This decision was communicated by CEO Niraj Shah on Friday. The company has been active in Germany for 15 years, but has found that the expansion in this market cost a lot of time and money. Instead, the resources should be used for other growth initiatives.

A total of around 730 jobs are broken down, which corresponds to about three percent of the global workforce. Due to the weak economic conditions, low brand awareness and a low market share in Germany, Wayfair was forced to take these steps.

Details on job cuts and restructuring

The restructuring has an impact on employees. Around half of those affected could stay in the company when moving to London or Boston. Wayfair ran a European headquarters in Berlin and two logistics centers in Germany, but the German market provides only a "low single -digit percentage" for profit. The restructuring costs are estimated at $ 102 to $ 111 million, and the Wayfair's German website is no longer available as usual; New orders are not accepted.

Since 2020, Wayfair has no longer achieved an annual profit and is planning to tap the inpatient retail. In May 2022, the first furniture store was opened near Chicago, and further shops in the USA are planned. International markets, such as Canada and the United Kingdom, could also follow. As Online dealer-News reported, this is the fourth job cuts of Wayfair since 2022, and the decision is part of a strategic realignment, resources in to invest more profitable markets.