May 22, 2014
The e-commerce startup Fab.com is preparing to sack as many as 90 employees in what appears to be the company’s final round of layoffs.
Multiple sources close to Fab have confirmed to WebMagazin that the company’s CEO and founder, Jason Goldberg, plans to close the New York office and relocate to Berlin, where Fab.com still employs approximately 60 individuals.
Update: Fab is officially denying claims that the NY office will be closed. „Fab will continue to have a presence in New York, supported by a broader global team.“
Regarding the CEO’s relocation to Berlin, Fab commented that „Jason will continue to support the global business, as he always has. Berlin will be part of that mix.“
Individuals close to Fab.com have told WebMagazin that management will officially announce the downsizing to its staff by the end of this week.
As the WSJ announced earlier this week, Fab has confirmed that the company will lose a third of its staff, mostly from the New York office.
ValleyWag claims to have heard that the New York office will be reduced to as few as 20 employees, while the company’s warehouse in New Jersey is to be sold.
Over 100 employees were sacked from the company’s Berlin office last summer, when Fab announced plans to scale back its European operations.
According to sources, the CEO now plans to rename the company, which has become increasingly infamous for its rapid expansion and rapid downsizing. The design company started out as the gay social network Fabulis, and has since witnessed a number of strategic ‘pivots’.
Goldberg has previously admitted that his company is still struggling to regain momentum.
Are we out of the woods yet? No. Do we know what it will take to get there? Sorta. We’re still figuring it out.
Having peaked at a valuation of $1 billion with a team of over 700 employees, Fab.com was one of Berlin’s best-known e-commerce startups. In the words of Fab’s founder and CEO, the remaining staff of 200 are now “fighting for our lives”.