Start-up darling Fab.com announced today that it will lay off just over 100 employees across the board, according to a post on the company’s blog entitled "Path to Profitability.

“In total the layoffs affect 101 people worldwide, including 84 people from our New York headquarters. Following these actions Fab will have 440 full time employees. As noted, not every group at Fab will be impacted. In particular, our Crackerjack customer service team, our merchandize planning, and our technology groups will remain fully in place.  We are also hiring people for our private label sourcing team in New York and to grow our 50-person Fab Designed By You (Fab DBY) custom-furniture group that continues to operate out of our Berlin office,” said the post, authored by Fab.com CEO Jason Goldberg. 

This news doesn’t come as a complete shock, however. Earlier this week, in an email to employees, Goldberg reportedly announced that the e-commerce start-up would be making a shift to an inventory-based system, departing from its flash-sale model, with additional plans to launch a new website and mobile app. The emailed memo also hinted at staffing changes accompanying this news, reported Bloomberg. 

“Our processes are changing, along with our investments in technology that may impact the number of people required to perform various tasks,” Goldberg said in the memo, as reported by the media outlet. “At the same time, we are accelerating our path to profitability, with a commitment to get Fab profitable on our current financing by continuously optimizing our cost structure.”

Fab.com, founded in 2011, grew in popularity for its selection of home furnishings and art. With total funding of $336 million, the young start-up has been valued at around $1 billion. This news comes on the heels of Fab.com layoffs in July, when the company eliminated 100 employees in Berlin

Fab did not immediately return request for comment.