The e-retailer puts out a fulfillment call that could, by one estimate, increase its warehouse workforce by 10%.
The cuts focus on men’s apparel, localized deals and gourmet food retail units.
Gilt Groupe has laid off 10% of its workforce and is saying goodbye to two of its executives, a spokeswoman for the flash-sale luxury and fashion retailer says.
Gilt Groupe is No. 49 in the Internet Retailer Top 500 Guide.
On their way out are John Auerbach, president of Park & Bond, the retailer’s men’s full-priced apparel site, and Nathan Richardson, president of Gilt City, which sells discounted tickets and services in several major cities. “Both will be transitioning on to other opportunities outside the company,” the Gilt spokeswoman says.
Gilt will lay off approximately 90 employees. “The layoffs were focused on Gilt's newer, younger businesses (such as Gilt City and Gilt Taste) not the core businesses,” the spokeswoman says. “By realigning costs at our younger businesses, we are giving them time to succeed.”
Gilt Taste sells gourmet food products and launched less than a year ago. Gilt City launched less than two years ago. Gilt Groupe was founded in 2007. Regarding Gilt City, the spokeswoman says that while it is succeeding in more populous areas as New York, Los Angeles, Chicago and Miami, the deals are not gaining enough interest in other markets. “Effective immediately we will be closing the offices in our secondary cities—San Diego, Houston, Philadelphia, Seattle, Dallas and Atlanta—and servicing those smaller markets through a centralized sales force,” the spokeswoman says.
She adds Gilt still is hiring, but did not say for what jobs. “We'll end the quarter with roughly the same number [of jobs] we started at,” she says.