That includes 10,000 seasonal workers for its distribution centers and 3,000 to help stores cater to cross-channel shoppers.
The layoffs come as the e-retailer struggles to make the transition from flash sales to traditional retail.
The rumors had been swirling, and Fab.com confirmed today that it will lay off 80-90 workers at its New York City location. That represents one-third of the e-retailer’s global team. Fab also laid off workers in Europe and other locations last year.
Fab.com issued a statement this morning saying the layoff was part of the retailer’s realignment strategy in its move from a flash-sale site to a more traditional retailer. “We are seeing great success in our recent private label initiatives and customized furniture launches—and we are aligning our global team to support that direction. We have every confidence in our path ahead.”
The announcement comes about six months after one of Fab’s co-founders resigned in November 2013, just a week after Fab.com unveiled a new web site design that embraced its new e-retail model.
Fab.com is No. 183 in the 2014 Internet Retailer Top 500 Guide, with estimated 2013 web sales of $140 million. The company experienced 21.74% growth from 2012 to 2013, but nothing like its growth rate a year earlier of 653.80%.
Since its launch in mid-2011 as a flash-sale retailer of design-inspired products, Fab.com has rolled out several web site upgrades, redesigned multiple times and introduced new iterations of its mobile apps. As the merchant moved away from limited-time sales of select items, it began stocking larger quantities of products that it sells for longer periods. Fab.com says that enables it to ship orders faster.
Fab.com raised $150 million in 2013 in its fifth round of funding over a two-year span.