LogisticsUS

Fabric Layoffs

July 2022

Fabric announced a layoff affecting 120 employees (40% of its workforce) in July 2022. The company operates in the Logistics sector.

People Affected

120

Percentage

40%

Announced Date

Jul 13, 2022

About

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.