Casper has laid off dozens of workers, together with three C-Level executives: its chief advertising officer, chief know-how officer and chief working officer, sources say. The mattress firm declined to remark.
The spherical of layoffs, communicated to workers on Friday, largely impacted retail and operations groups, signaling that the enterprise could also be present process a broader restructuring. Laid-off workers had been provided severance packages.
Notably, the impacted executives had been all pretty current additions to the crew. CTO Ben Clark has been with the corporate since July 2019, whereas former CMO Lisa Pillette joined Casper in March 2020. Casper COO Charles Liu had solely been on the firm for eight months earlier than this spherical of layoffs.
Casper’s CFO stays on the startup, however that position has had some important turnover as effectively. In an April 2020 enterprise replace, Casper introduced that Gregory Macfarlane, its CFO and COO on the time, was leaving the corporate. Interim CFO Stuart Brown ultimately took the position, and three months later resigned. The newest CFO, Michael Monahan, took the place efficient August 31, 2021.
Over a yr in the past, Casper introduced it was shutting down its European operations, slicing 21% of its world workforce. The transfer was then attributed to Casper’s new aim of “reaching profitability,” which included a deal with North American operations.
The enterprise hinted then that the short-term closure of its retail shops impacted its general direct-to-consumer channel, forcing it to take steps to attenuate working prices. Now, the startup goes one step further by eliminating roles inside its retail and operations groups.
One founder within the direct-to-consumer area, who spoke on the situation of anonymity as a consequence of her lack of direct data with the corporate, mentioned that Casper’s layoffs may be a response to iOS 14.5, Apple’s newest software program that can crack down on apps that observe customers’ knowledge with out permission. The setting restricts the promoting knowledge that corporations can entry, making it tougher to justify price range and perceive the efficacy of their gross sales technique.
“Performance advertising by way of paid channels, particularly Facebook and Instagram, is wonky proper now,” the individual mentioned. “So, in the event that they had been actually reliant on that channel that might be one thing that has effects on their gross sales.”
Casper priced its IPO shares at $12 and debuted at $14.50 a share simply because the COVID-19 pandemic was gaining momentum in February 2020. The firm dove practically 72% from its opening worth earlier than recovering, reaching a newer peak of practically $11 in February 2021. Today, the corporate trades at simply above $5, a decline of greater than half from its opening.