Fab.com, an e-tailer that sells design-inspired products, is laying off 101 people worldwide to "accelerate its path to profitability," said Fab.com Founder and CEO Jason Goldberg on his Betashop blog.
"Fab is investing tens of millions of dollars in developing and acquiring fresh merchandise for our customers at amazing prices, backed by our smile guarantee," Goldberg wrote. "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."
The retailer has made layoffs in previous months, while it is transitioning from a flash sales model to more of a traditional e-commerce platform.
The layoffs will affect nearly every department at Fab.com. However, the company is hiring employees for its private label sourcing team in New York and for its Fab Designed By You custom-furniture group, which operates in Berlin.
"This decision makes immediate and valuable sense for our customers and our business overall. We face the future of Fab with a justified optimism, confidence, and belief in the strength of our offering and our plan," Goldberg wrote.
Fab.com raised $150 million in its fifth funding round in June, raising its total funding to date to more than $310 million.