| SAN FRANCISCO
SAN FRANCISCO Oct 2 E-commerce startup Fab.com
Inc will lay off nearly a fifth of its workforce beginning
Thursday as it tries to attain profitability by automating more
of its business.
The company, valued at $1 billion by private investors, said
it will cut 101 jobs worldwide, including 84 people in its New
"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," Jason
Goldberg, the chief executive of the company, told employees in
a memo Thursday. "The impetus behind the decision is our plan to
accelerate Fab's path to profitability."
Employees across half a dozen departments will be let go,
while the company's offices on two floors in a building in New
York will be combined into one floor, a person with knowledge of
the matter said.
Venture capital firms including Andreessen Horowitz, Menlo
Ventures, and First Round Capital have put more than $300
million into the company.
In July, the company cut 100 jobs in Berlin and moved some
workers to New York in July.
(Reporting by Gerry Shih; Editing by David Gregorio)