Flash purchase site Fab want to transform the global network of retailers layoffs over one hundred

Beijing on July 31st news, the U.S. technology website AllThingsD Tuesday published an article that the United States flash sales site Fab announced in Europe layoffs of more than 100 people, the purpose is to carry out the business transformation gradually withdraw from the flash purchase business, and ultimately create a global online retail giant.

below is the full text of the article:

Fab has just made cuts to its European make snap type employees, announced that its headquarters in Berlin laid off more than 100 employees. Fab said the reason for the layoffs, because the company developed a business transformation strategy, which gradually withdraw from the flash purchase business model, and then to be retained by Fab their own merchandise inventory and operation mode of global network of retail stores.

Is a bit unusual

Fab of the reduction time is only a month ago, Fab announced that it has completed the first part of the fourth round of financing, financing amounted to $150 million, the follow-up funds for this round of financing will be in place soon after. Fab the number of layoffs, about 696 of the total number of employees of the company’s total of 15%.

nearly 70 employees will leave immediately, other workers will be in the transition period to stay for several months. Another 36 employees were asked to work from Berlin to New York. Fab CEO Jansen · Goldenberg (Jason Goldberg) said in a AllThingsD interview, the layoffs measures to eliminate the business mode of Fab replication after the existence of: Fab is actually run two flash sales, one in Europe and one in the United states.

Goldenberg also said that, in addition, Fab is gradually withdraw from the field of flash purchase business, and hopes to eventually become a large network of retailers, the sale of the same commodity on a global scale. Goldenberg believes that it is because of this business transformation, so the procurement of goods and marketing and other key functions focused on the city of New York is logical.

Goldenberg said: the nature of the flash purchase business is that every day you will open a new store, and sell hundreds of thousands of products. Because of this, we must replicate the same business model in europe. But the best shops are once in a while, and they can be sold anywhere, or once in a while. Our desire is to be a great global store, so we need to start working as a global store."

critics might think Fab is too radical international market expansion, especially the Fab acquisition of the German website Casacanda and British website Llustre and other initiatives, but also doomed to the fate of the current Fab forced layoffs.

Goldenberg, however, believes that, in order to fight off the competition from other flash purchase market in Europe, Fab must also take the pace of international market expansion. But he admitted that, for some time ago

Leave a Reply

Your email address will not be published. Required fields are marked *