Casper is the newest direct-to-consumer startup to announce important layoffs in the course of the COVID-19 disaster. Nowadays, the six-year-old emblem laid off 78 workers from the company crew, which makes up 21% of its general company body of workers. The corporate could also be winding down its Ecu operations and its 31-person headquarters in Germany, in line with an individual accustomed to the subject. The opposite workers who had been laid off got here from quite a lot of departments, together with advertising and product building. In step with a observation from the corporate, this will likely lead to “greater than $10 million in annualized financial savings, and are a part of the corporate’s total focal point on attaining profitability.” Greg Macfarlane, Casper’s CFO and COO, will leave the corporate in Would possibly.
This follows information on March 30 that the emblem furloughed all 500 of its retail workers at its 62 brick-and-mortar shops. The corporate stated it could proceed to provide the ones staff medical insurance.
It’s a startling fall for an organization that as just lately as remaining yr was once valued at $1.1 billion. Since Casper introduced in 2014, challenge capital traders had pumped $340 million into the corporate. In February of this yr, the emblem had a extremely expected IPO, but it surely flopped. On its first day as a publicly traded corporate, the corporate raised $100 million within the providing, valuing the corporate at $500 million, revealing that the corporate was once wildly overestimated via personal traders. Casper’s monetary filings to the SEC within the lead-up to the IPO confirmed that the corporate had misplaced just about $100 million a yr over the previous two years. In December 2019, prior to the IPO and the coronavirus disaster, Casper laid off 30 workers as a part of a company reorganization, in line with Bloomberg. In its observation, launched nowadays, the corporate says it hopes to reach profitability via mid-2021.
Casper is one in all a number of fast-growing direct-to-consumer corporations that experience laid off workers in fresh weeks, together with Everlane, Away, and Thirdlove. In an Instagram Tales put up, one worker named James who was once laid off from Casper nowadays said he was once devastated about shedding his task, however he’s seeking to keep constructive. “Even though I’m undecided what the next day to come holds, I know that prior to the next day to come should come a excellent night time’s sleep,” he wrote.