Looks like there’s even more bad news on the horizon for Fab, the struggling e-commerce startup that laid off a bunch of employees earlier this month.
ValleyWag’s Sam Biddle heard from sources inside the company that the employees still part of the company have been given ending dates for their jobs.
Biddle’s sources said that the remaining employees will be gradually let go over the course of six months, with January 2015 as the final end date. A Fab spokesperson denied these were end dates, but did say that employee contracts had “minimum guarantees of employment.”
Biddle’s sources say that the team that will stay on board until the end of the year are there simply to help the company sell off the remainder of its inventory. CEO Jason Goldberg will soon be splitting his time between Fab’s New York City headquarters and its office in Berlin.
Once seen as e-commerce’s golden child with investors practically throwing money at it, Fab is burning through what remains of its about $US350 million in total funding after a rough year of firings and product pivots, with Biddle’s sources citing a burn rate as high as $US9 million per month with as little as $US30 million left in the bank.
However, a Fab spokesperson told Business Insider that Fab’s current burn rate has left it with enough money in the bank for several years of business, and that the team’s recent restructuring is part of its focus to prepare the company for a lasting future. She said that Fab had no intention of shutting down its operations in the U.S. market.