After wide layoffs and a co-founder quitting, inside sources tell us things are getting even worse at the high-design warehouse: Fab's COO is out, and more are planning to follow her lead. This could be an implosion for the online shopping darling.
Beth Ferreira, who served as Fab's COO since 2011, was fired last Thursday. A source tells us "she told [Fab CEO] Jason [Goldberg] to go fuck himself," which jibes with pretty much everything we've heard about Jason Goldberg.
According to multiple former employees with current knowledge of Fab's corporate activity, the shopping site is on the verge of serious tumult. "[Fab] will be restructuring all C-Level positions next week," one source told us. "More shakeups to come." Another said that several high-profile executives, including Fab's SVP of Marketing, SVP of Design, and other top staffers are either in the process of being fired or quitting. This will be a total shakeup of the most important employees at a company in very rough shape right now—the only thing worse for morale than firings are even more firings.
A Fab rep confirmed the reports, somewhat:
With regards to the rumors, it is accurate that Fab is undergoing management changes as we realign the business to execute on our 2014-2017 plan. There will be a number of management changes involved as we streamline the organization and move to a category P&L based structure. As not all of the organizational changes are final yet, we are withholding comment on any specific individuals until later this week.
She added that Fab has "$120M cash in the bank and we're being very thoughtful about how to use that to make our path forward as successful and sustainable as possible." It's going to need it to both run a faltering business and hire new people to help run that faltering business. Buy your haute bowties and coffee tables while the store's still open, everyone.
Update: In an email to Valleywag, Beth Ferreira denies that she use bad words against her former boss, Jason Goldberg.