The downward spiral of the e-commerce site Fab continues, with rumours that it’s going to trim its New York City office to less than 30 people, down from a few hundred.
“Fab is going to reduce its NY office down to 20 to 25 people” and is “selling their warehouse in NJ,” a source close to the company told Valleywag’s Sam Biddle.
This lines up with an earlier TechCrunch report that said that the company would be seriously down-sizing after a series of meetings between CEO Jason Goldberg, other key executives, and the company’s board.
We’ve been told there are cuts coming, but no definite number has been decided. Fab declined to comment on the reports. At its height, Fab had around 700 employees.
Fab has raised more than $US330 million in funding from investors like Andreessen Horowitz, First Round Capital, and Menlo Ventures, but has had some serious issues over the last year, including layoffs, declining site traffic, departures from top executives, and product pivots. In January, Fab reduced its European website’s offerings to only custom furniture.
The site has been trying to restructure after its rapid growth, and this new “strategic decision” looks like another really bad sign for the company’s future.
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