Leading wholesale marketplace Faire has recently undergone a restructuring that has resulted in the layoff of approximately 20% of its workforce, equating to around 250 employees. This is Faire’s second round of known job cuts within a span of just over a year. The company has made these changes in an effort to realign its teams with its long-term vision, according to reports.
Key Takeaway
Wholesale marketplace Faire has implemented a restructuring plan and laid off around 20% of its workforce, or approximately 250 employees. This is the second round of job cuts for the company within a little over a year.
Background on Faire
Faire, a wholesale marketplace, operates as an indie Amazon, connecting independent businesses worldwide with local retailers to expand their reach and sell their goods to a larger audience. The company has garnered significant attention and investment since its inception in 2017. Investors such as Founders Fund, Sequoia Capital, Y Combinator, Khosla Ventures, and Lightspeed Venture Partners have contributed over $1.4 billion to Faire’s funding.
In May 2022, Faire raised an impressive $416 million extension to its Series G financing, effectively doubling the size of the round. This funding round valued Faire at $12.59 billion post-money, indicating significant growth since its last valuation in November 2021.
Restructuring and Long-Term Vision
The recent restructuring at Faire is aimed at better aligning the company’s teams with its long-term vision. A Faire spokesperson stated that the organizational structure had been built with multiple layers of management to support rapid expansion. However, when hiring slowed down last year, the structure became unsustainable. Faire’s focus remains on consistently supporting its independent retailer customer community and serving as a reliable long-term partner.
While Faire’s current business performance is not explicitly mentioned, the company reported substantial growth in mid-November 2021. It boasted over $1 billion in annual volume in under five years, with more than 3x year-on-year growth. Additionally, Faire expanded into 15 markets in Europe and the United Kingdom, achieving an annualized sales volume exceeding $150 million in just six months, a scale that took nearly three years to attain in North America.
Faire’s Partnership with Shopify
In September, Faire announced a strategic partnership with e-commerce platform Shopify, designating Faire as the recommended wholesale marketplace for Shopify’s millions of merchants globally. As part of the collaboration, Shopify also became a shareholder in Faire.
With a vast marketplace connecting retailers worldwide to an extensive network of over 100,000 brands, Faire continues to pursue its mission of empowering independent businesses and promoting the growth of emerging brands.
