Fabric

Israeli retail technology startup Fabric is laying off approximately 30 employees, representing about 15% of its 200-person workforce, as announced in April 2024. This marks the company's second significant round of layoffs, following a cut of 150 jobs in July 2022. The decision comes as the company, which provides automated fulfillment solutions combining hardware and software, shifts its business model from selling complete robotic warehouse systems to focusing solely on technology and software sales. Founded in 2015 and having achieved unicorn status with over $1 billion valuation, Fabric has raised $375 million to date. The layoffs follow recent leadership changes, including the appointment of a co-CEO, as the company navigates adjustments in its growth strategy within the competitive retail tech industry.

In July 2022, Fabric, a New York-based robotics and micro-fulfillment startup, laid off 40% of its workforce, affecting 120 employees out of a total of 300. This significant staff reduction was part of a major strategic shift, as the company moved from providing a full-service offering to becoming a platform-based model. The change was driven by customer demand for more direct control over operations, leading Fabric to pivot towards allowing clients to operate its automated warehouse systems on their own premises. Concurrently, the company appointed Avi (Jack) Jacoby as its new CEO, replacing founding CEO Elram Goren. Fabric, which had raised over $330 million and achieved a valuation exceeding $1 billion, operates in the logistics and e-commerce technology industry, focusing on automating last-mile fulfillment processes to help retailers compete with giants like Amazon.