FabFurnish Lays Off One-Fourth Staff As Part of Business RestructuringAugust 5, 2015 2015-08-05 13:20
FabFurnish Lays Off One-Fourth Staff As Part of Business Restructuring
Online furniture seller FabFurnish has fired at least 50 employees, about one-fourth of its workforce, and vacates warehouses as part of a company restructuring.
According to Economic Times, the Rocket Internet-funded company is changing its business model and laying off employees at various levels, while hiring new talent simultaneously.
The change comes just weeks after Rocket Internet replaced the top management at FabFurnish moving founders Vikram Chopra and Mehul Agrawal away from day-to-day responsibilities.
Their roles have been filled by senior directors Ashish Garg and Ankita Dabas.
Apparently FabFurnish has laid off its chief technology officer and the entire marketing team, while insiders claim that the situation is chaotic. Newly hired personnel were being laid off while more were being hired without clear defined roles.
Dabbas said that the company is rejigging its headcount to bring in fresh talent and perspective. She added that both the technology and marketing teams are intact and are hiring for key positions in both teams.
Indian e-commerce has been on a growth trajectory, spending big bucks on discounting goods to grow their market share and offering big pay packages in order to attract talent. It is expected that there will be major upheaval once investors start pressuring these companies to become profitable.