New York electric dealer cuts hundreds of employees to less than 30

Summary: Fab's chief executive Jason Gothenburg's website Fab is still on the decline, amid rumours that it intends to slash the size of its New York office, slashing its staff from hundreds of to less than 30. Fab will be working in New York, according to people familiar with the matter.

FAB chief executive Jason Gothenburg

Fab's site is still on the decline, amid rumours that it intends to slash the size of its New York office, reducing its staff from hundreds of to less than 30.

"Fab will cut the size of its New York office to 20 to 25 people and sell its warehouse in New Jersey," according to people familiar with the matter. ”

This is in line with a previous report by TechCrunch, the famous technology web site, that the Fab chief executive, Jason Goldberg, has met with other executives and board members of the company, who may be careful to consider scaling down the size of the company.

It has long been heard that Fab will lay off staff, but the exact number of layoffs has not been fixed. Fab did not comment. During the peak period, Fab had a total of about 700 employees.

Fab from Anderson Horowitz (Andreessen Horowitz), first-round Capital Corporation and Menro (Menlo Investors, such as ventures, have received 330 million of billions of dollars in investment, but last year encountered some important problems, including layoffs, declining web traffic, senior executives, and so on.

Fab in January reduced the type of goods sold on its European website, leaving only the category of custom furniture.

Fab, formerly a gay social networking site, was transformed into an e-commerce company two years ago. At present, the company's products include furniture, jewellery, pet accessories, last year registered users reached 12 million, valued at 1 billion U.S. dollars. Fab has been running three rounds of layoffs since last year, leading to the departure of more than 10 senior executives, including chief marketing officers and European business executives.

After a rapid expansion, FAB has been trying to adjust. Fab's latest "strategic decision" looks like the company's prospects are really bad.