Retail technology startup Fabric cuts staff, overhauls business model
Retail tech unicorn, Fabric, a specialist in robotic micro-fulfilment technology, is laying off over 120 employees, more than a third of its workforce, as it shifts its business strategy.
Last year, Fabric, formerly known as CommonSense Robotics, raised $200 million in a Series C funding round at a valuation of over $1 billion.
“At the centre of this perfect storm of e-commerce is Fabric and our ability to enable on-demand retail at profitable unit economics,” Elram Goren, Fabric CEO and Co-founder, said at the time.
“While we use the term ‘robocorn’ a bit tongue in cheek, we see this milestone as a real turning point in the industry, from what was once tepid exploration of micro-fulfilment to total market validation and now rapid expansion.”
“We’re thankful to our partners for trusting us to serve them and to our incredible team who will continue moving mountains to make our vision a reality.”
“This is still ‘day one’ for us, and we’re extremely excited about the road ahead as we expand our offering into new markets, drive more efficiencies across the supply chain, and focus on scaling.”
Fabric’s technology is used by grocery and general merchandise retailers in New York City, Washington, DC, and Tel Aviv. Last year, the venture announced partnerships with Walmart, Instacart, and FreshDirect.
It was founded in 2015 and has raised $336 million in total to date.
It now plans to focus its efforts on offering a software and hardware product to companies that will allow them to manage operations themselves. Fabric previously set up warehouses and operated them for companies.
Goren will also be stepping down from his CEO role and be replaced by COO Avi Jacoby.
A company spokesperson said: “Most brands find our technology so essential that they want to own their Fabric powered fulfilment warehouses directly.”
“As a result, we’re updating our strategic focus to transition our product offering from a service and network model to a hardware and software platform model.”
“Our purpose hasn’t changed. On-demand fulfilment is on the rise, and we are well positioned to lead the industry with robotic technology to empower brands to exceed their consumers’ expectations from click to doorstep.”
