Fab.com laying off 20 percent of work force
The e-commerce site is making job cuts as it aims to reach profitability.
The layoffs will begin Thursday, according to the report, and are related to the company's shift from focusing on "flash-sales" -- where a deal is only made available for a limited amount of time -- to more of a traditional e-commerce business.
"We've made the tough but correct decision to eliminate positions that are either legacies of our former flash-sales business model or are part of current processes that can be managed with innovative technology and fewer people," said CEO Jason Goldberg, in a memo to employees. In July, the company cut 100 jobs in Berlin.
The company has a ton of venture funding from heavyweight Silicon Valley firms including Andreessen Horowitz and Menlo Ventures, pouring $300 million into the company.
Fab has been heavily scrutinized since its $1 billion valuation by private investors. Goldberg has also been criticized for his management style and the type of work environment at the company.
We've asked Fab.com for comment on the report and will update this post when we hear back.
Update at 10:36 a.m. PT: The company has confirmed the layoffs in a comprehensive blog post by Goldberg.