PoshmarkInc., a second-hand apparel marketplace headquartered in Redwood City, Calif., is laying off some of its more than 800 employees.weight loss is progressing After 2 months from Korean internet company Naver Completes Company Acquisition at $1.2 billion earlier this year.
Poshmark confirmed to TechCrunch that it is laying off staff due to the economic slowdown, but did not specify how many people were affected.
A Poshmark spokesperson told TechCrunch, “We have made the difficult decision to downsize some of our teams to align with our future priorities, the current economic climate, and our return to being a private company.” “We are extremely grateful for the contributions of talented people in impacted roles.”
It also did not disclose the company’s total workforce or whether the layoffs will be in the United States only or globally. Its LinkedIn profile describes it as having “over 800” employees.
We’ve been asking questions and will update this post as soon as we know more.
Poshmark’s job cuts come as many tech companies are also cutting jobs. As the economy falters, tech companies in particular are seeing a slowdown in business and are turning to layoffs as part of a larger cost-cutting strategy to focus more on profitability. It’s a trend affecting fashion e-commerce, with the likes of Everlane and StitchFix collectively laying off hundreds of employees in recent months.
Founded in 2011, Poshmark claims more than 80 million registered users in the United States, Canada, Australia and India. It was delisted from the NASDAQ after the acquisition of Naver was completed, but according to the last financial report filed, in 2021, total annual product volume will reach his $1.8 billion, posted net revenue of $44.4 million in Q3 2022an 11% year-over-year increase, reaching $475.6 million in total merchandise for the same period.
At the time of the Naver acquisition, Poshmark leadership touted the scaling potential and technology investments that came with the transaction.
“As part of Naver, we will benefit from Naver’s financial resources, significant technological strength, and strong presence in Asia to expand our platform, improve the user experience of the Poshmark community, and reach out to all stakeholders. It creates added value,” Manish Chandra of Poshmark said in a statement earlier this year. “[We] We look forward to Poshmark employees benefiting from being part of a larger global organization that shares our values and vision of content, community and empowerment. ”
At a press conference in San Francisco last month, Poshmark announced a new shopping feature, Posh Lens. This allows a user to take a picture of a product using his Posh Lens and find a list of similar products on the Poshmark platform.
Naver CEO Sooyeon Choi said in a January statement that all of Naver’s technologies, including search engines, AI recommendations, and e-commerce tools, will be incorporated into Poshmark to improve user experience on the platform.
