SAN FRANCISCO, Oct 2 (Reuters) - 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 York headquarters.
“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)