Faire, the wholesale marketplace company, laid off approximately 250 employees on Wednesday, November 2, 2023. This is the second time in just over a year that the company has laid off workers, although this second restructuring appears to be bigger. It previously laid off about 7% of its workforce last October.
A spokesperson confirmed the job cuts, saying the layoffs were done in order to restructure Faire to “better align our teams with our long-term vision.” The layoffs were company-wide, and impacted people in engineering, product, design, and data science.
Faire CEO Max Rhodes said in an email to employees that the layoffs were necessary to ensure that the company is “positioned for long-term success.” He also said that the company is “committed to supporting our team members through this transition.”
Faire is an online marketplace that connects independent brands with retailers that can stock their products in their stores. It was valued at $12.5 billion in May 2022, and has raised over $1.4 billion since its founding in 2017.
Faire’s investors include Dragoneer Investment Group, Sequoia Capital, Founders Fund, and Forerunner Ventures. The company recently announced a partnership with Shopify that established Faire as the preferred wholesale marketplace for Shopify merchants. Shopify’s point-of-sale technology is also now the preferred solution for Faire’s customers. Shopify also became a shareholder in Faire as part of the deal.
The layoffs at Faire come as the tech industry is facing a number of challenges, including a slowdown in hiring, rising inflation, and the ongoing war in Ukraine. A number of other tech companies have also announced layoffs in recent months, including Meta, Twitter, and Netflix.
Outlook for Faire
Despite the recent layoffs, Faire remains a well-funded and well-positioned company. The company has a strong partnership with Shopify, and it is expanding into new markets. However, the company is also facing a number of challenges, including a slowdown in the economy and rising inflation. It remains to be seen how Faire will perform in the coming months and years.
Impact on Employees
The layoffs at Faire will have a significant impact on the employees who were affected. Many of these employees have worked hard to build the company and make it a success. They now face the uncertainty of finding new jobs in a challenging market.
Faire has said that it is committed to supporting its employees through this transition. The company has offered severance packages and outplacement services to help affected employees find new jobs.
Conclusion
The layoffs at Faire are a reminder of the challenges that the tech industry is facing. The company is well-funded and has a strong partnership with Shopify, but it is also facing a slowdown in the economy and rising inflation. It remains to be seen how Faire will perform in the coming months and years.
