Lyst, the U.K. fashion e-commerce site that last year raised funding at a $700 million valuation, is the latest tech startup to rein in spending by cutting staff. TechCrunch has learned that the company is in the process of laying off 25% of its employees, working out to about 50 people, as part of a larger restructuring to conserve cash flow and move to profitability.
The details were first leaked to us by way of an internal memo from the CEO, Emma McFerran, who took over the role of CEO from founder Chris Morton in July of this year. The company then confirmed the details to us. It’s not clear which departments will be most impacted, but the memo notes that some 85 people are being contacted who will be “impacted by this exercise.”
We understand from sources that the company had plans for an IPO next year but that these are now being pushed back, and that it might be looking for another round of funding to shore up its finances.
