Wayfair, an early e-commerce disruptor, wants to focus more on physical retail and has decided to exit the German market and cut 730 jobs as a result.

Budget-furniture seller Wayfair (W) is shifting its focus toward physical retail stores and North American markets as it cuts over 700 jobs and exits Germany.

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.

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

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