Fab CEO Jason Goldberg

Fab To Lay Off Around 90 Employees

The troubled e-store's latest round of layoffs cuts a third of the staff.

Fab has gone through some tough times lately—multiple rounds of layoffs in the past year, the departure of both its COO and its founding design chief, and a total realignment of its business strategy—and the troubles aren't over yet. The e-commerce site has confirmed to us that it will "in weeks ahead" lay off 80 to 90 employees from its New York office, about a third of its global staff.

Fab originally began as a curated flash sale site, a bit like Gilt Groupe, to sell a wide-ranging yet small number of specially chosen items. (You can read more about the origins of the company here.) But the company has changed its tactics; now it has a brick-and-mortar showroom, and a custom-designed line of furniture, and it's becoming more a typical online retailer than a flash sale site. It also hired a new designer leader, Senior Vice President of Design Ecosystem Kiel Mead.*

"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," according to a statement company spokesperson Amy Juaristi emailed to us. (This is a much nicer way of phrasing the layoffs than CEO Jason Goldberg's, who once sent a memo to his staff titled "It's a fucking startup. Why are you here?)Fab confirmed to us that it will be reducing its staff to about 200, much decreased from not very many months ago when it employed a whopping 700 people.

The spokesperson says Fab will be providing a job fair and job-hunting training to those who will be laid off.

*An earlier version of this article suggested that Senior Vice President of Product Design Evan Clabots was hired after Fab changed its business strategy. He was hired before, in April 2013.

[Photo by Bryan Smith | Corbis]

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  • Catrina Boettner

    Totally agree with E.Lizabeth. What did it for me was the price. I made my first and last purchase on the site about 2 years ago. I got the item (gourmet beef jerky) and the next day found it at my local World Market for 2 bucks a bag cheaper. So I did a little digging. Every item on Fabs site is marked up from the original retailers. No matter how good they tell you the sale is, it's not. You can get it far cheaper anywhere else 99% of the time.

  • I used to love Fab when they had a small number of great design items. After a while they degraded into stocking mostly hipster bullshit - mustaches everywhere. I stopped going there and I'm guessing a lot of other people did too.

  • Should I feel guilty about getting wood samples off them when I wasn't ever thinking about ordering anything? Probably.

  • I had two transactions with Fab, and they were both deplorable experiences. They were awful in their customer service. After screwing me the second time (Cadillac Problems, I know), their offer to make amends was $5 off my next order with them... and it expired in a very short window. In this day and age, you cannot treat folks that way.