Wayfair stock fell Friday morning after the online furniture seller said it was shutting down its business in Germany and cutting a little over 700 jobs in a bid to focus on more profitable growth areas.

The retailer plans to reinvest the savings from the move into expanding its physical footprint, growing its loyalty program and other initiatives.

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.

Wayfair is exiting Germany, where it has operated for 15 years, after failing to turn the company “into a household brand” in the market.

Wayfair, the prominent U.S.-based e-commerce company specializing in home goods, has announced plans to reduce its global workforce by approximately 3%, affecting hundreds of employees. This decision comes amid ongoing challenges in the retail sector and the company’s strategic exit from the German market.

However, despite these efforts, scaling our market share and improving our unit economics in the German market has proven challenging due to factors

Wayfair Inc. (NYSE:W) announced on Friday its decision to exit the German market. The online retailer said the pullout from Germany will be effective immediately. "Since Covid, and in particular over the past year,