The online retail behemoth Wayfair has dramatically reduced its UK workforce by more than half within two years, newly disclosed figures show.
The British arm of the American homewares and furniture retailer reported a headcount of 405 at the close of 2024, a sharp decline from 587 in 2023 and 847 in 2022, as reported by City AM.
This workforce reduction coincides with a significant cut in Wayfair’s UK sales, which dropped from £83.4m in 2022 to £69.1m in 2023, and further to £59.4m in 2024.
These details emerged from recent accounts submitted to Companies House for Wayfair UK’s latest financial year.
Additionally, the filings revealed that the division’s pre-tax profit fell slightly from £2.6m to £2.2m in 2024. Wayfair attributed the 14 per cent downturn in turnover primarily to a 17 per cent cut in administrative expenses.
Wayfair focused on ‘nailing the basics’
Emphasising operational efficiency, Wayfair stated: “The company is focused on driving cost efficiency, nailing the basics and earning customer and supplier loyalty every day.”
Despite the uncertain economic climate, Wayfair expressed confidence in its strategy, stating: “Although the short-term macro-economic picture is unpredictable, we are confident in our ability to navigate its challenges and contribute positively to our ultimate parent’s commitment to maintain adjusted EBITDA [earnings before interest, taxes, depreciation and amortisation] profitability and then to reach positive free cash flow.”
Established by CEO Niraj Shah in 2002, Wayfair’s headquarters are situated in Boston, US.
For the same fiscal year, the broader group reported a total net revenue of $11.9bn (£8.8bn), marking a decrease of $152m. The company’s US net revenue declined by $109m to $10.4bn, while its international sales dropped by $43m to $1.5bn.
Wayfair’s gross profit amounted to $3.6bn, but it recorded a net loss of $492m. For the first quarter of its current financial year, Wayfair reported a total net revenue of $2.7bn, an increase of $1bn.
Its US sales also rose by $38m to $2.4bn, however, its international revenue fell by $37m to $301m.
