Wayfair has slashed its UK workforce by more than half within two years as it battles a sales slump.
The UK arm of the US homeware and furniture retailer employed 405 staff at the close of 2024, down from 587 in 2023 and 847 in 2022, as first reported by City AM.
The workforce reduction coincided with a sharp drop in Wayfair’s UK sales over the same timeframe, falling from £83.4m in 2022 to £69.1m in 2023 and £59.4m in 2024.
The details have emerged from fresh accounts lodged with Companies House for Wayfair UK’s most recent financial year, which also reveal that the division’s pre-tax profit fell from £2.6m to £2.2m in 2024.
Wayfair attributed its 14% decline in turnover primarily to a 17% reduction in administrative costs.
In a statement the retailer said: “The company is concentrating on driving cost efficiency, getting the fundamentals right and earning customer and supplier loyalty each day.
“Whilst the short-term macroeconomic outlook remains uncertain, we are confident in our capacity to navigate these challenges and contribute positively to our ultimate parent company’s commitment to maintain adjusted EBITDA profitability and subsequently achieve positive free cash flow.”
Wayfair was established by chief executive Niraj Shah in 2002 and is based in Boston, US. For the same financial period, the broader group recorded total net revenue of £8.8bn, representing a decrease of £113.2m.
US net revenue dropped by £81.2m to £7.7bn whilst international sales diminished by £32m to £1.1bn. Wayfair’s gross profit reached £2.6bn, though it recorded a net loss of £366m.
For the first quarter of its current financial year, Wayfair reported total net revenue of £2bn, an increase of £745m. Its US sales also rose by £28.3m to £1.7bn, but international revenue declined by £27.5m to £224m.
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