Rakuten to shut UK and Spain marketplaces as bloodbath continues

Yes, Rakuten has a cafe.

Japanese ecommerce giant Rakuten will shut down its marketplaces in the UK and Spain in August, it announced in a press release today. A number of employees will be affected in its Cambridge and Barcelona operations, it said, without providing details.

The company explained it’s closing down these operations because they were getting too costly. It will instead focus on its businesses in France and Germany as these “have the scale and potential for sustainable growth.”

The move follows “a strategic review of its operations in Europe” and is a part of “a plan to restructure some of its existing operations to ensure [Rakuten] is fit to capitalize on future opportunities in the region.”

The company expects the closures to be carried out by the end of August after consulting with affected employees and going through the necessary legal processes. It did not say how many employees will be affected or what’s in store for them.

The company gave assurance that it “will continue to grow its presence in Europe across its diverse business portfolio – from ecommerce to digital content businesses such as Wuaki and Kobo, to the Viber messaging platform and the ad tech business Rakuten Marketing.”

The restructuring of its European operations comes three months after a similar move in Southeast Asia. In March, Rakuten shut down its marketplaces in Singapore, Malaysia, and Indonesia, with 150 staff supposedly laid off.