Fab, a New York-based commerce company backed by the likes of Andreessen Horowitz and Menlo Ventures, is going to cut about a fifth of its work force (roughly 100 people) from its various offices. Jason Goldberg, the CEO of the company, in a memo to employees wrote: “The impetus behind the decision is our plan to accelerate Fab’s path to profitability.” This is the second major set of layoffs at a company that has raised nearly $300 million from investors and is valued at $1 billion by private investors.
2 thoughts on “Fab will cut nearly 20 percent of its work force”
Another company valued at $1B+ and yet to see a profit!?!
What I know about Fab is only from their TV ads, which told me absolutely nothing about the company except that they sold weird knitted football helmets (?) or something. I have no idea.
I do know Fab is a laundry detergent and can’t imagine how you extend that brand into anything else. It doesn’t make sense.
Fab was also a popular phrase with the Thunderbirds puppets. Doesn’t seem to be related but it might make slightly more sense than laundry soap. Still not sure.
And now this company -that apparently was supposed to be like Amazon (how would anyone ever KNOW that from the ads???)- is laying off people because they’re not selling enough of… whatever they sell to people who have figured out who or what they are.
Not surprised at all. They should have picked a better name. Better branding. And much better TV ads. They blew it on all counts.