Fab is shedding executives like crazy.
Chief Operating Officer Beth Ferreira is leaving the e-commerce retailer, making it the second high-level departure this month. Chief design officer Bradford Shellhammer resigned his position Nov. 1, citing his desire “to make other things in this world” for leaving the company he helped found.
Before she joined Fab during its early days in 2011, Ferreira was the VP of operations and finance at Etsy, consulted on operations for well-known e-commerce startups like Birchbox and Joor, and worked as an associate at Flatiron Partners.
Bloomberg broke the news about Ferreira’s departure based on an e-mail from CEO Jason Goldberg to Fab’s board. Fab has lost more than a dozen high-ranking managers and executives, including Shellhammer, the chief marketing officer and the head of its European businesses.
“With regards to the rumors, it is accurate that Fab is undergoing management changes as we realign the business to execute on our 2014-2017 plan,” Fab spokeswoman Deborah Roth said in a statement. “There will be a number of management changes involved as we streamline the organization and move to a category P&L-based structure. As not all of the organizational changes are final yet, we are withholding comment on any specific individuals until later this week.”
Goldberg’s e-mail also revealed his plans to further downsize the company.
Ferreira helped drive the astonishing growth Fab has experienced over the past few years.
Fab started out as a social network for gay men, shifted to a flash-sale model, and six months ago changed its plan again, becoming a more straightforward online design store “at an Ikea scale.”
Goldberg said at the time that Fab’s sales are expected to more than double in 2013. It has raised a total of $310 million in venture capital and is now valued at $1 billion.
But all this activity has caused some serious growing pains — Fab completely restructured its online store and apps. It has laid off hundreds of employees — 30 percent of its staff. These bulk layoffs are in an effort to focus the company on the new direction and help Fab reach profitability.