Wayfair to exit Germany, cut 730 jobs as it looks to focus on physical retail

Core Insights - Wayfair is exiting the German market and plans to cut approximately 730 jobs, representing about 3% of its global workforce, to focus on new growth drivers such as physical retail [1][6] - The decision to exit Germany is based on the assessment that expanding in this market would require excessive time and financial resources, which could be better allocated to other growth initiatives [3][5] Company Strategy - About half of the affected employees will have the option to relocate to other locations such as London or Boston [2] - The layoffs include corporate roles as well as positions in customer service and warehouse teams [2] - The company has been operating in Germany for 15 years, but it accounts for a "low single digit percentage" of Wayfair's revenue, customers, and orders [6] Market Conditions - Challenges in the German market include weak macroeconomic conditions, lower maturity of offerings, limited brand awareness, and scale [4] - Wayfair's recent sales fell by 2% to $2.9 billion in the three months ending September 30, indicating a sluggish housing market affecting demand for home goods [8] Future Focus - The company is reallocating resources to areas with stronger long-term potential, such as the U.K. and Canada, where it sees exciting opportunities [7] - Wayfair's physical retail initiative, which began with a store outside Chicago, has led to increased online sales in the vicinity, and the company plans to open more stores in the U.S. and internationally [7][8]