Retail tech startup Fabric firing 15% of workforce in second round of layoffs
Retail tech startup Fabric firing 15% of workforce in second round of layoffs
After cutting 150 jobs in July 2022, the Israeli company is planning to lay off another 30 employees
Fabric, which develops automated fulfillment solutions combining hardware and software, is laying off around 30 employees, which accounts for 15% of its 200-person team.
This is the second significant round of layoffs at the company after it cut 150 jobs in July 2022. The number of employees to be laid off in this round is not final and will be determined following hearings.
Less than three weeks ago, the company announced the appointment of Curt Avallone as co-CEO alongside Avi (Jack) Jacoby, who took over the CEO role in 2022. Jacoby joined the company in 2018 as Chief of Staff and later became CEO of the Israel market and chief operating officer.
The previous round of layoffs came nine months after it raised a $200 million Series C funding round at a company valuation of over $1 billion. Fabric was founded in 2015 by Ori Avraham, Eyal Goren, Elram Goren, and Shay Cohen, and has raised $375 million to date. Its investors include Temasek, Corner Ventures, Union Tech Ventures, Playground, Innovation Endeavors and Aleph.
The company's robotic system is capable of entering urban spaces of various sizes and maximizing output and storage per square meter. It enables the quick collection of orders for same-day or next-day deliveries—a trend that has greatly strengthened in recent years—and reduces shipping costs. Previously, the company used to sell robotic warehouses as a complete solution, but it now focuses solely on selling technology and software.
Fabric stated in response: "As part of the development of work plans for the upcoming year and in line with strategic decisions, the company has identified key focus areas to achieve goals more efficiently. Consequently, adjustments were necessary in the organizational structure, including the closure of unnecessary positions. We understand the challenges associated with this process and sincerely thank the dedicated employees who have contributed to the company's successes over the years. Fabric is committed to supporting and assisting these employees during this period. We believe these changes will significantly support the implementation of work plans and help us maintain our leadership in the field."
