By (Reuters) – Online furniture retailer Wayfair (NYSE:W) said on Friday it would lay off 730 employees as it exits the German market to focus on investments in core businesses.
Shares of the U.S.-based company were up about 4% in premarket trading.
The company has been grappling with slower traffic and weaker demand from cost-conscious consumers who have been putting off higher-margin purchases.
Following the restructuring in Germany, Wayfair expects to take charges of about $102 million to $111 million consisting of employee-related costs as well as non-cash charges related to facility closures and other wind-down activities.
These charges are expected to be incurred across the fourth quarter of 2024 and the first quarter of 2025, the company added.
Wayfair had about 14,400 employees globally, as of Dec. 31, 2023.
Analysts have noted that Wayfair could see challenges from the implementation of President-elect Donald Trump’s import tariffs given the company’s high exposure to imports and price-sensitive mass market customer base.