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Fab.com Needs More Money, Less People

Rivet's 2020 Denim Circularity report takes a deep dive into how the global denim industry is plotting its circular future amidst a worldwide pandemic.

Fab.com wants to make money and they’ve shed 19 percent of their staff to do it.

Smiles were not guaranteed as the e-commerce design store that sells everything from paisley print pendant lamps to designer denim cut 101 jobs in an effort to increase profits.

In a press release on the CEO’s blog titled, “The Path to Profitability @Fab,” founder and chief executive officer Jason Goldberg said, “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.”

The company will retain 440 full-time employees and will be hiring for its private label sourcing team in New York to grow its 50-person Fab Designed By You (Fab DBY) custom-furniture group operating out of the Berlin office.

Goldberg said improving the company’s cost structure is critical to improving customer benefits and that the company plans to invest tens of millions of dollars to bring in fresh merchandise at great deals. He said he wants Fab to be “profitable and self-sustainable as soon as possible.”

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