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An Internal Fab Memo Suggests More Employee Layoffs Could Be On The Way

A memo issued by CEO Jason Goldberg states the company's shift away from flash sales could "impact the number of people required to perform various tasks."

[Image: Flickr user LeWeb13]

As the seemingly unstoppable e-retailer Fab continues to shift away from the flash-sale model it became known for in its first two years to an inventory-based model, CEO Jason Golberg has signaled more employee layoffs may be coming.

In an internal memo obtained by Bloomberg, Goldberg directed employees to this letter about the company's future strategy, writing:

"Our processes are changing, along with our investments in technology that may impact the number of people required to perform various tasks."

The news comes two months after the company announced it would lay off more than 100 employees based in its Berlin headquarters.

If Fab wants to make good on its stated goal of reaching profitability off its existing financing (more than $300 million to date) while investing in the technology, warehouse space, and operations costs associated with moving to an inventory-based model, it's not terribly surprising to hear layoffs could be in order.

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