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Fab Lays Off 100 Employees in Europe

In a move away from flash sales, has slashed over 100 European workers from its payroll.

The Berlin headquarters of design e-commerce company Fab will be a little quieter from now on as the company has laid off 70 employees effective immediately and plans to move another 30 or so out of the company over the next several months.

Another 36 staffers may be being moved from Berlin to New York. The company says it's trying to save money and that restructuring its operations dramatically will remove replication of roles on either side of the Atlantic. The company has also revealed it will be departing from its earlier model of flash sales and instead plans to position itself as an online retailer with global reach.

Fab had duplicated its operations because of the very nature of setting up a flash sales operation, which requires very rapid assembly, use, then disassembly of infrastructure for each sale. Interestingly enough the company has recently raised $150 million in series D funds and has job offers for some 70 staff still open. The company has recently changed its customer-facing services so it's acting more like a discovery and recommendation engine, and is getting into made-to-order items and physical bricks-and-mortar stores.

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  • Douglas Crets

    This is interesting. Perhaps unrelated, but I was talking to someone who works in pretty high position of authority at Zynga, and he started out in Munich. The Zynga offices there, too, closed down and sent relevant senior leadership to SF. While Zynga and Fab are very different, and in different financial positions, is there a blip on the radar here of European startups having to close up shops and consolidating and moving teams to the US?  Two is not a pattern, but I thought it was interesting. 

  • Linda

    That's a very good question. Two interesting companies, both goal oriented and driven, but happen to stroll down the same path...what was the radical change?