The online retailer offices of Wayfair in Boston, on January 20, 2023. File Photo by CJ Gunther/EPA-EFE
Wayfair announced on Friday that it was leaving the German market after 15 years, citing lagging sales compared to Britain and “weak macroeconomic conditions” in the country.
Co-founder and CEO Naraj Shah said while Wayfair has found success in Britain, the same has not followed in Germany and the decision has been made to reallocate resources where future growth potential is best. Advertisement
Shah did not mention how many employees would be laid off or any financial details associated with leaving Germany.
“Scaling our market share and improving our unit economics in the German market has proven challenging due to factors such as the weak macroeconomic conditions for our category in Germany, the lower maturity of our offering, our current brand awareness, and our limited scale,” Shah said in a note to Wayfair employees.
“While this is difficult news to share, we have much to look forward to in 2025. We will continue to focus on operations and investments in our international markets — Canada, the U.K., and Ireland where we have meaningful market share.”
Shah said it will offer employees affected with severance and access to its employee assistance program. He said they will also receive “individualized information” with more details. Advertisement
“To our colleagues leaving: Thank you for your dedication and contributions to our company,” Shah said. “We have learned so much from you and are grateful for the positive impact you’ve made.”
A year ago, Wayfair laid off 1,650 employees, citing over-hiring during the COVID-19 pandemic when sales peaked. Those layoffs affected 13% of its global workforce, the company said then.
