Wayfair (W) to exit the German market

Wayfair (NYSE: W) disclosed:

On January 10, 2025, Wayfair Inc. (“Wayfair” or the “Company”) announced its decision to exit the German market, effective immediately (the “Germany Restructuring”). Subject to compliance with local consultation obligations where applicable, the Germany Restructuring is expected to result in a workforce restructuring impacting approximately 730 employees, although we expect approximately half of these positions to relocate to other corporate offices.
As a result of the Germany Restructuring, we estimate that we will incur aggregate charges of approximately $102 million to $111 million, consisting of (i) approximately $40 million to $44 million in cash employee-related costs, including severance, benefits, relocation and transition costs (excluding non-cash charges associated with equity-based compensation) and (ii) approximately $62 million to $67 million of other primarily non-cash charges, including charges related to facility closures and other wind-down activities. The majority of our cash payments are expected to be made over the next 12 months. While the Company continues to evaluate the timing of non-cash charges, we currently anticipate that such charges will be incurred across the fourth quarter of 2024 and the first quarter of 2025. Cost savings from the Germany Restructuring are expected to be largely reinvested across the Company’s core initiatives and remaining international markets over the balance of 2025.
These estimates, and the timing thereof, are subject to a number of assumptions and actual results may differ materially. The Company may also incur charges and expenditures not currently contemplated due to unanticipated events that may occur in connection with the Germany Restructuring.
Item 7.01. Regulation FD Disclosure.
On January 10, 2025, the Company’s Chief Executive Officer, Co-Chairman and Co-Founder sent an email to employees about the Germany Restructuring and the Company’s continued commitment to its core initiatives and remaining international markets in Canada, the United Kingdom and Ireland. A copy of the email is furnished as Exhibit 99.1 and incorporated herein by reference.

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