Berlin, January 10: Wayfair, a US-based e-commerce company, will reportedly lay off 3% of its global workforce and also exit the German market. The company aims to focus on physical retail and reprioritise its investments. The Wayfair layoffs will affect 730 employees as the company finds Germany a challenging market. The retail sector has been struggling with several challenges worldwide, including companies like Amazon, Alibaba, Qoo10, Flipkart, eBay, Udaan, Etsy, Vroom and others.

The recent announcement of Wayfair layoffs marks the beginning of the struggles in the e-commerce business. According to a report by CNBC, the employees affected by the job cuts at Wayfair would be given the option to stay with the company if they agreed to move to London, Boston, or other locations. However, if this is not feasible for them, the e-commerce company will lay them off, including the corporate roles, customer service team, and warehouse teams, as stated by Wayfair finance chief Kate Gulliver. TaskUs Layoffs: Indore-Based BPO Allegedly Fires Over 300 Employees Overnight Without Notice, Sacked Staff Protest (Watch Video).

The report mentioned that Wayfair CEO Niraj Shah shared a memo with the employees and explained why workforce reduction was necessary for the company. He said it would take "too much time and money" for the company to expand its business in Germany. He added that instead of expanding, the company could focus on other growth initiatives.

Niraj Shah wrote to the employees that after assessment, the company concluded that achieving market-leading growth in Germany was lengthy and costly. He said the German market was challenging due to the weak macroeconomic conditions of the categories Wayfair was offering. Shah further said that the company wanted to align its resources where they could deliver the most significant impact. TCS Hiring Alert: Tata Consultancy Service To Hire 40,000 Trainees and Graduates by 2026, Chief HR Milind Kakkad Says Will Reduce US H-1B Visa Dependence.

Wayfair CEO said it was a difficult decision to reallocate efforts to strong long-term growth areas, and the current efforts have shown promising progress. The restructuring of the business is expected to cost around USD 102-111 million. Out of this, USD 40-44 million would be the employees costs involved with Wayfair layoffs decision. The employee's costs will include severance pay, relocation, benefits, transition, and non-cash charges ranging from USD 62-67 million. 

(The above story first appeared on LatestLY on Jan 10, 2025 07:16 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).