Fab.com Plans to Eliminate Over 100 Jobs By End of 2013

Jul 31, 2013 11:35 AM  By

Fab.com announced its plans this week to centralize operations from Europe to its New York City headquarters, according to a recent blog post  written by CEO and founder Jason Goldberg.

The centralization of operations will result in the elimination of more than 100 positions in the company’s Berlin, Germany office by the end of 2013, according to Goldberg.

According to Goldberg, Fab plans to consolidate much of its marketing, merchandising and operation teams into a single global team in New York.

More than 30 people in the Berlin office are being asked to move to New York.  Local customer service, returns, shipping, logistics, finance, IT and HR positions will remain in Europe at the company’s Berlin and Eindhoven offices, according to Goldberg.

“Fab remains 100% committed to the European market and the Fab Berlin office will continue to support our growing EU presence with a more tightly focused team in place,” said Goldberg.

According to Goldberg,  Fab customers will not see a disruption in service as a result of this change.  Earlier this year, the company announced they are revolving their business model from flash sales to being a comprehensive online lifestyle shop.

“The nature of the flash sales coming and going daily required us to build up large teams in both locations doing much of the same thing, said Goldberg.

According to Goldberg, Fab is building a scalable model that will allow them to sell the same products simultaneously everywhere around the globe while giving customers complete confidence in their purchases.

“That was hard to do with flash sales as products would come and go from Fab daily; the nature of flash sales dictates that products are not kept in inventory and are thus very difficult to ship fast and for free,” said Goldberg.