A wholesale e-commerce startup based in San Francisco is laying off hundreds of employees in its second round of job cuts in just over a year.
Faire Wholesale Inc. is cutting around 250 jobs just a little more than a year since a previous round of layoffs that eliminated dozens of jobs.
The new round of job cuts will affect between 15-20% of Faire's current workforce, the company said.
In October 2022, Faire previously cut 7% of its workforce which was around 1,200 people, the Information reported at the time.
"We've restructured the company to better align our teams with our long-term vision. We built our former organizational structure with multiple layers of management to support our pace of hiring. When we slowed down hiring last year, naturally we weren’t able to grow into that larger structure," a Faire spokesperson said in a statement.
Faire was founded in 2017 by CEO Max Rhodes, COO Jeffrey Kolovson, CTO Marcelo Cortes and Daniele Perito.
The company is a wholesale marketplace that connects independent artisans and small brands with other small businesses.
Faire has raised more than $1.5 billion and was most recently valued at $12.6 billion last year.
Its investors include Shopify, Dragoneer Investment Group, Norwest Venture Partners, Founders Fund, Lightspeed Venture Partners, Sequoia Capital, Khosla Ventures, SV Angel, Y Combinator and DoorDash CEO Tony Xu.
There has been a string of layoffs from Bay Area companies this year.
Most recently, Roku announced 10% cuts, impacting more than 100 people just at its San Jose office.
Lending Club cut 14% of its workforce in October.
StitchFix has also laid off hundreds of workers this year.
The number of job losses in San Francisco specifically from the tech industry peaked in January and the sector actually grew 18% since early 2020 as of August.
