Fab Cuts 20 Percent of Staff in Fresh Round of Layoffs
Fab will slash nearly a fifth of its global workforce in a move aimed at bringing the design-based e-commerce startup closer to profitability.
The company will lay off 101 employees, including 84 from its New York headquarters, Fab CEO Jason Goldberg announced on his blog Thursday.
"We've made the tough but correct decision to eliminate positions that are either legacies of our former flash-sales business model or are part of current processes that can be managed with innovative technology and fewer people," he wrote.
This is the second round of layoffs at Fab this year. In July, just a month after closing a $150 million round of financing, the company laid off more than 100 employees in Europe.
Goldberg insists the cuts are necessary to help Fab achieve its long-term vision. "I acknowledge that sometimes our near-term decisions may not always make immediate sense externally," he wrote. "This is not one of those times."