On the heels of Birchbox’s announcement of plans to lay off 25% of its staff, which includes nearly half of the employees at the company’s New York corporate offices, competitor FabFitFun is also reducing headcount.
FabFitFun, a leading lifestyle membership and subscription commerce company, has laid off around 100 employees, or 18% of the subscription-membership merchandise and media company’s headcount, according to reporting by Variety.
A FabFitFun rep sent Variety an internal memo to staff from its three co-founders, co-CEOs and brothers Daniel and Michael Broukhim and editor-in-chief Katie Rosen Kitchens.
“After several years of rapid growth, we are at a point where we need to sharpen our focus on the areas that drive the most value. As part of this effort, we’ve made the decision to pull back certain initiatives and streamline our core business efforts. As a result, we’ve had to make the extremely difficult decision to reduce the size of our team.”
The founders also wrote in the memo, “This decision wasn’t made lightly and we are very grateful for the contributions that these departing individuals have made to our team and community.”
FabFitFun was founded in 2010 by the Broukhims and Rosen Kitchens as a newsletter and blog. The company raised $80 million in Series A funding in February 2019 led by Kleiner Perkins, with participation from existing investors NEA and Upfront Ventures. The capital was earmarked to expand the offerings of the FabFitFun membership, evolve the platform as a marketing partner and launchpad for brands, and fuel the company’s continued global expansion.
Last month, the company hired its first CMO Louisa Wee, previously Netflix’s VP of Marketing Strategy and Analysis and Programmatic Media Buying.
Photo: via FabFitFun