October 3, 2013, 2:21 PM

Fab.com will lay off another 101 employees worldwide

The retailer cut 100 employees this summer as it moved away from flash sales.

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Web-only retailer Fab.com, which sells design-inspired products, will lay off 101 employees worldwide, including 84 in its New York City headquarters, CEO Jason Goldberg announced on the company blog today. Customer service, technology and merchandise planning staff will not be affected, he writes.

The layoffs follow a 100-person staff reduction in Fab.com’s Berlin office over the summer, and will leave the retailer’s total headcount at 440 full-time workers, according the blog. The retailer will, however, be hiring staff to add to its 50-person Fab Designed By You team in Berlin, which oversees its custom furniture division.

Fab.com’s staff cuts in recent months are part of its plan to become profitable while transitioning from flash sales to more traditional e-commerce, Goldberg has said. The retailer is investing tens of millions of dollars into holding its own inventory so that it can deliver orders and process returns more quickly. “To pay for that, while accelerating our path to profitability, 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,” he writes. “The layoffs will affect almost every department at Fab but it is not an across-the-board cut; rather it reflects the strategic direction of our business.”

In June, Fab.com raised $150 million in its fifth funding round, bringing its total funding to date to more than $310 million. Founded in 2011, the retailer sold roughly $20 million via flash sales in its first six months and has grown since to having several $40 million sales quarters and $1 million sales days, Goldberg writes in a letter to employees released in conjunction with today’s blog post. The retailer has more than 10 million members and sells in 30 countries outside the United States.

Fab.com is No. 150 in the Top 500 Guide.


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