Farfetch is understood to be looking to lay off between 25% and 30% of its workforce as new owner Coupang works to “streamline the business”.
Staff at the online luxury retailer were told on Friday that it “will begin the process of saying goodbye to colleagues and friends who have been important parts of Farfetch’s journey thus far”, Drapers reported.
The company wrote in an internal memo: “We have decided to streamline the business to allow us to operate from a position of financial strength.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
“While it’s never easy to go through this process, this was a necessary decision to secure the future of our business.”
Farfetch, which employs around 2,000 people, is looking to make cuts in its product design team and Farfetch Platform Solutions – it’s suite of commerce solutions and retail technology designed for use by brands and retailers.
The business has begun redundancy consultations for affected staff based in Portugal and will start consultations for employees based in other geographies, including the UK, on 19 February.
The news comes as it emerged that founder and chief executive José Neves has stepped down from the business.
Click here to sign up to Retail Gazette‘s free daily email newsletter
