Settle down, everyone! Despite several rounds of layoffs, a complete rejiggering of its executive ranks and being one pivot away from morphing into the dollar section of a Target, Fab is doing fine, CEO Jason Goldberg insists.
The saga of Fab has been pretty depressing. Since its founding in 2011, the company has changed course three times while burning through hundreds of millions in funding while it found itself. At its peak, Fab employed 700 workers, with half of them eventually being axed. It faces another round of layoffs come Feb. 14 when another 350 positions will be eliminated.
But all those cuts were necessary, according to the company brass that BI spoke with. Since Fab’s business model of being a flash sale site wasn’t working, Mr. Goldberg had to shift gears from its impending “death spiral” and go through massive layoffs in both its US and European offices. One of its board members told BI that they were “impressed that [Mr.] Goldberg had the humility and quick-wittedness to admit that his original plan was failing.”
And people close to Goldberg and Co. lambasted the media (hi!) for Fab’s drab appearance in the press. Original board member Allen Morgan said that Fab’s reputation has been besmirched because the press tends to chase people who’ve been laid off, rather than talking to current employees of the tight lipped company. “It’s easy to get access to people who are pissed off because they just got fired,” he said.
“When the history of Fab is written, the picture of him will be pretty laudatory, for how he behaved in the last six or nine months. Most companies would not have made those decisive changes in such a compressed timeframe,” Mr. Morgan said.
And in case you forgot this was a tech startup, Fab employs a “Chief People Officer” that also defended Mr. Goldberg’s honor. “He’ll never get a fair break in the media. He’s got courage, guts. I give him tons of credit.”
With an inner circle like this, they’re probably already planning the company’s IPO launch party.