May 13, 2014
The past few months have been particularly rough for e-commerce website Fab.com.
Following yet another round of layoff rumours, Fab CEO’s corporate blog Betashop was shuttered this week. The blog had regularly been used by company founder Jason Goldberg to fend off criticism and reports of downsizing. Last week, TechCrunch reported rumours that another 60 employees will leave the company at the end of this month.
Having started out in June 2011 as an innovative startup for designer furniture, Fab quickly registered a meteoric rate of growth. The high point of its expansion was in 2013, when it was a valued at more than one billion US dollars.
But in the same year the company failed to reach its revenue from 2012. Fab was evidently following the wrong business strategy, as Jason Goldberg himself admitted in a blogpost last year on betashop.com, now offline.
The company swiftly began cutting back on operation expenses and reduced the number of employees from 740 worldwide to only 305. The European headquarters in Berlin was received the brunt of the downsizing, and more than 100 employees were fired in 2013.
But rather than regaining momentum, Fab.com was left with a major drop in customers, followed by more layoffs and the departures of leading company figures like COO Beth Ferreira and co-founder and chief designer officer Bradford Shellhammer.
By the end of April, CEO Jason Goldberg was speaking of war-like conditions in yet another blogpost (which has now also vanished with the rest of betashop.com) and asked for the unconditional commitment of his employees.
Have you ever been clinging onto a rocket ship, then cut the engines at full speed, and then tried to fly again? That’s what we’ve been going through at Fab the past months.
Fab has publically stated that it has „every confidence in our path ahead.“ (Correction: the article previously claimed Fab had not yet responded to layoffs)
We have parted ways with incredibly talented individuals for whom we have only great respect and appreciation. Realigning our team is part of a broader business plan, which we began implementing last Fall and which will continue to unfold in weeks ahead.