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.