Online retailer Fab.com is preparing to sack 15 per cent of its staff amid concerns it is failing to meet its growth targets.
The retailer is cutting 100 jobs from its European headquarters in Berlin and 'centralising' operations to its New York base, according to a blog post by chief executive Jason Goldberg.
The Financial Time said the decision 'raises questions about [Fab's] growth trajectory'. It said the company grew revenue to $115 million last year, but that was almost 20 per cent short of growth targets.
It also lost a number of key executives and searches for the company's name have dropped sharply since the beginning of the year according to Google Trends, it said.
The company has moved away from a format offering 'daily deals' to one closer to a standard Amazon-style ecommerce format.
Goldberg said: 'Today is a tough day for Fab and our amazingly talented and hardworking team as we are putting into effect a considered initiative to centralise much of out operations at our New York headquarter.'
He said the new business model is 'scaleable and allows us to sell the same products simultaneously everywhere around the globe.'
'That was hard to do with flash sales as products would come and go,' he said.
The firm has raised $328 million so far from investors including Chinese internet giant Tencent and Actor Ashton Kutcher. In June it was reportedly valued at $1 billion.
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