Fab.com scales back European operations
Fab.com has reduced what they will be selling through Fab Europe. Now Fab Europe will sell only custom-made and high-quality furniture. Fab Europe sold a variety of products just like they did on their U.S. website. Fab.com Jason Goldberg wrote a blog post about the changes and how the company tried to grow too quickly in Europe.Fab.com raised $150 million with a $1 billion valuation throughout 2013. The company fired around 400 people in 2013 though.
Goldberg wrote this in a blog post:
It’s also easy to fall into the trap of believing that things would have been better if you had just insisted it being done your way vs. listening to someone else. I can think of countless times over the past couple of years where I knew the right answer but allowed the team to pursue a different direction. For instance, I recall vividly meeting after meeting when we were planning Fab’s European operations and while everyone was calculating the headcount ratios we had in the U.S. and extrapolating the same ratios for Europe, I was the guy in the room saying, “Hang on, if this thing is going to scale we can’t just hire the same size army everywhere.” But, fault for us doing it anyway is not because I didn’t put my foot down and insist the team do it my way, rather it’s because I had already set the tone that growth mattered more than efficiency in the near term. By championing growth on the one hand while questioning efficiency on the other, all I was doing was confusing the team, not leading them. And, everyone — including myself — was too busy focusing on growth to even take the proper time to figure out the tough problems in front of us.