As Fab makes the journey toward profitability, it’s doing so without a big chunk of its employees.
The company confirmed today its plans to lay off 101 of its employees — nearly a fifth of its total workforce. The layoffs come a few months after Fab announced its plans to move away from flash sales and toward developing and selling its own line of products.
“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,” Fab CEO Jason Goldberg said in memo to employees.
The cuts, which have been rumored for a few weeks, come months after Fab announced that it was laying off 100 workers in its Berlin office.
“This is a strategic business decision, endorsed by our investors with whom we discussed this possibility, but that doesn’t obviate the sadness we feel in saying goodbye to the many people who helped put Fab on the amazing path we are on today,” Goldberg wrote after the previous round of cuts.
While the layoffs are bad news for the employees involved, Fab itself seem have the groundwork set for something big: The company is just coming off two separate major funding rounds, and it’s valued at over $1 billion.