E-commerce startup Fab has confirmed giving the ax to 81 employees — 73 full-timers and eight temps. AllThingsD reports the casualties include Chief Product Officer David Paltiel as well as other executives. It says Devin Flaherty, the company’s head of user experience, resigned. Chief Operating Officer Beth Ferreira is leaving as well.
None of these executives were mentioned by CEO Jason Goldberg in his memo, published on Valleywag, on “refounding” the company. Goldberg said of the streamlining going on:
This will distribute decision making and accountability throughout the organization and in doing so will require fewer people and especially fewer managers than Fab has today. It is also creating a great opportunity for many people (and many of you) who were previously #2’s or #3’s in their department to step up and take on lead roles.
Goldberg said the company’s strategy will be “narrow and deep” sales from designers designing solely for Fab. The company previously had been focused on flash sales.
Its staff has been cut by at least half from its peak of nearly 700 employees. In October, the company laid off 100 people. It also let go more than 100 from its Berlin office in July.
Fab just raised $165 million in new investment, so it’s not going out of business. However, site traffic has nosedived by 75 percent over the past year.