May 23, 2014
The European headquarters of online design shop Fab.com has survived the company’s third round of layoffs without any losses.
The e-commerce company has officially announced that between 80 and 90 employees have already been let go, comprising a third of all global staff.
According to Fab, the staff reductions are restricted to the New York office. Fab’s Berlin office, which deals largely with the site’s „Designed By You“ made-to-order furniture, had previously suffered the loss of more than 100 employees.
Fab has denied rumours that the New York office will be closed and claims that „Fab will continue to have a presence in New York, supported by a broader global team.
WebMagazin has heard numerous reports from Fab employees that Fab founder and CEO, Jason Goldberg, plans to move to Berlin. Fab.com PR spokesperson Amy Juaristi told WebMagazin that „Jason will continue to support the global business, as he always has. Berlin will be part of that mix.“
A new Fab office in Berlin
Fab’s European presence is scheduled to relocate to smaller offices, away from its four-story office building by Berlin’s Spree riverside, individuals close to Fab have informed WebMagazin.
Responding to these claims, Fab told WebMagazin it plans to grow its Berlin team by at least 25 percent in the coming months: „To make room for that team and to enable Fab to have a showroom in Berlin, we are moving offices later this year.“
Fab’s CEO previously announced he was forfeiting his salary this year in order to help reduce spending.
Fab says it is organising „a job fair in June, interview training, one-on-one resume coaching as well as strategic job search assistance“ for all employees that have been sacked.
Following the layoffs, the company employs approximately 200 individuals globally, down from 700 in 2013.