Fab.com Lays Off Almost 20% Of Staff
Fab.com, one of the largest designer e-commerce websites, has announced that they are going to lay off 101 employees, which is nearly 20% of their staff. Fab.com laid off 100 employees back in July. Fab.com is currently a private company that has a value of around $1 billion based on venture capital term sheets. The company is not yet profitable though. Fab.com is preparing to shift to an inventory-based model soon. Up until now, Fab.com used to depend on “flash sales.”
“Our processes are changing, along with our investments in technology that may impact the number of people required to perform various tasks,” stated Fab.com Jason Goldberg in a memo, which directed employees to a detailed letter about the company’s strategy. “At the same time, we are accelerating our path to profitability, with a commitment to get Fab profitable on our current financing by continuously optimizing our cost structure.”
Fab.com raised a total of over $300 million in funding from investors like The Washington Post, First Round Capital, SoftTech VC, SV Angel, Kevin Rose, A-Grade Investments, Thrive Capital, Andreessen Horowitz, Menlo Ventures, DoCoMo Capital, TenCent Holdings, Baroda Ventures, Atomio, Phenomenon Ventures, Singtel Innov8, ITOCHU, and Mayfield. In 2012, Fab.com generated $115 million in revenues, but the company was aiming for $140 million. The company is expected to hit between $200 and $300 million this year.