Shake-Up at Fab: Another Exec Departs, More Changes Coming
Just a week after co-founder and design chief Bradford Shellhammer announced his departure from Fab, Bloomberg reported Tuesday that the e-commerce site's COO Beth Ferreira (pictured above) will also resign--and it looks like there might be more management changes before the end of the year.
While the news hasn't yet been confrmed by the company, Bloomberg reported sources "with knowledge of the matter" say that CEO Jason Goldberg sent an email to the company's board with the news that Ferreira, a former Etsy executive, will be out by 2014 and that more "downsizing" is in the near future.
“It is accurate that Fab is undergoing management changes as we realign the business to execute on our 2014-2017 plan,” spokeswoman Deborah Roth told the outlet. “There will be a number of management changes involved as we streamline the organization.”
Goldberg is reportedly pitching a new organizational structure to the company's board, and by the end of the week, more changes should be announced.
In the email, Bloomberg reports Goldberg wrote:
“This plan includes a narrower business focus, refined merchandising strategy, investment in strategic initiatives to delight our customers, and a revamped and streamlined organization structure that will help us better serve our customers while guiding Fab to profitability.”
And at least one of Fab's investors recently hinted that this "narrow" focus includes management with experience in e-commerce. After Shellhammer's departure early investor and board member Allen Morgan told Forbes, “In the new model, you have a different kind of merchandising that successful e-retailers need, part data-maker and part data-scientist.”
The news tops a rollercoaster year for the start-up, which has undergone a major pivot from a flash sales site to an e-commerce platform, laid off nearly 20 percent of its employees, attracted some bad press, and lost one of its co-founders.
Shellhammer and Goldberg launced Fab in 2011. The company has $340 million in funding and has been valued at around $1 billion.
Update: Roth told Inc.com that she has no further comment.