Around a Fab or be sold, were behind the CEO play bad

(article / horse relief yi)

business to help companies design and manufacture of hardware products as the main business of the PCH International (PCH) announced that the company has acquired the flash sales site Fab.com . It is important to note that after the hugely popular with investors, once considered tencent internationalized layout a pawn, and investment of the penguin empire.

Fab.com once the favored by venture capitalists and design fan of darling , but now have to sale sale . Acquisition of both sides refused to disclose the price of the deal, but the technology blog Re/code had previously reported that Fab.com to 700 dollars in cash plus about 800 dollars price of shares sold.

as a star once, Fab after a period of time has not seen any positive news. Executives, continued losses, massive layoffs. It is reported that so far, the Fab layoffs is close to the 80%. Lost more than a month 900 dollars. Media reports last year “if, in accordance with the rest of the book 3000 dollars to calculate, then has almost can’t to capital game Fab , should be till the end of the beginning of next year.”

Fab the loss is caused by many factors. In addition to the external competition, as a magician, game capital wrist Fab , chief executive of Goldber strategies fickle, good ‘far let Fab thoroughly to the door. When a product or service do not focus on improving the user experience, but blindly follow suit, also died it is destined to its fate.

, Fab now totals from Andreessen Horowitz , Ashton Kutcher and other investors as much as $3.36. The media has reported that tencent to participate in the investment of the company.

the following the enclosed hunting cloud network last year, in-depth analysis of the article “ Fab and playing bad a pubic department “; Interested friends can also cloud network hunting another report before the

if asked about overall company’s employees when to begin to find the company what’s wrong place, they often mention locked events. Executives on the office door suddenly a conspicuous orange lock. “Company has always been proud of its openness,” said a former employee. “You can go in to founder to speak up. But all of a sudden they even can’t believe we won’t steal their desks.”

in the past two and a half years of time, as a focus on the design of the overall company e-commerce sites, soaring performance. It became as of development from scratch to 2012 with 1400 employees, earning more than $115 million in a big company. Its products are sold around 26 countries and regions, and raised the risk of more than 325 million investment fund, the total value more than $1 billion. But in the past six months, it has to “to just” trend decline rapidly.

this began in June and overall company cut its 150 employees in Europe. Headquarters in New York and fired in October, 100 employees. Then in early November, co-founder of Bradford Shellhammer departure in a statement. Bradford was pluralism, he has company contact, chief marketing officer, chief operating officer, director, responsible for the company’s development and procurement aspects. Followed by New York started the third round of layoffs, is expected to lay off more than 50 workers.

“office unusually quiet in recent days,” one employee said, “everybody is low head, busy finishing their resumes. Mood depressed.”

the Fab? It will ever regain its former style? The answer lies in a person – co-founder and CEO Jason Goldberg. According to industry insiders, he got the support of the board of directors, and has just completed the “reconstruction”, promoted several junior staff to fill the gaps in the management. Fab is said to have $120 million in bank deposits, which can make the company survived in 2015.

but current and former employees agree: unless Goldberg, find a way to boost the morale of the downturn, regain its startup amazing spirit, otherwise the company could not recover. Had a sudden trouble, Goldberg, have previous experience to draw upon. This is not the first time he has made rapid development in the company when in emergency brake. “If you want to know why the Fab after these astonishing upheaval and painful layoffs, actually very simple,” said a Fab executives “recall Jobster. Because he has done the same thing.”

2004, Goldberg is the first batch of venture entrepreneur in Seattle. For he was not yet now grey and white hair and graceful body appearance, but he is still very handsome, charming. His early work was as White House aides of the Clinton administration, work 100 hours a week. The Internet is an important issue in the White House. He later as a product manager at t-mobile. He didn’t have any good technology, to have plenty of entrepreneurship. He founded Jobster began as a responsible for the management of employee referrals tools. For some time, Seattle Jobster is popular enterprise, it is believed to be LinkedIn in silicon valley rival.

“he (Jason) active thinking, behavior and bold, this is the most entrepreneurs do not have Seattle,” a senior journalist has been widely reported Jobster John Cook said. “He always can attract good people and let them believe that they are changing the world.” Goldberg is web 2.0 to create “magic boy (Wonderboy)”, until one day he suddenly nothing.

Jobster to expand at a feverish pace. Like Fab, company for four rounds continuous fast wind investment and financing, and shopping spree. Goldberg, bold promote company’s development and future prospects. Jobster progresses day by day, once in the media public opinion on a par with Facebook.

at the end of 2006, after two years of financing, rumors Jobster will begin to layoffs. Goldberg, denied the rumors, as he recently in Fab – began to shift the focus of the discussion above to increase revenue. He repeatedly emphasized the need to reduce the cost. The timing and surprisingly similar Fab company — are now financing for two years.

Jobster indeed as expected layoffs, influence scope big – more than 41% of the company staff. This happened with in recent months in Fab, many executives, even co-founder announced the departure. In the end, even the Goldberg, oneself also had to leave, Jobster eventually sell. As for Goldberg, in his own words become science and technology circle “untouchable” in Seattle, can only be moved to New York.

to start Fab in a news conference after the company, Goldberg, recalled his experience in Jobster and explained: “I remember each of the mistakes made by. $48 million for tuition, I basically learned, know how to start a company.”

but those studies he years observer don’t agree with this view. “He burned ran into a wall after so much money, you must take it for granted that he should be able to learn a couple (lessons),” Cook said, “but through the observation of the Fab these days, I feel the tragedy in the Fab again.”

Scott Haug Jobster Goldberg, was created when the technology group, one of the first employee in the company ranked seventh. He said: “Jason extremely charismatic. He was very good at selling their ideas, so can recruit a large number of talents and substantial financing. But the problem is that it doesn’t matter how much the company development well, Jason always hope to do more, better and more.”

just to Jobster Haug, the site also is just a recommendation in staff management tool. “When the business is very good, but never can do.” Haug said. Goldberg, after acquisition of startups WorkZoo and adjust the positioning of the Jobster for search engines. A few months after the acquisition of GoJobby should think again Jobster development as a social network. “He kept from a hot (any when the technology in the field of popular words) to jump to another. This to our developers feel more pressure, also make investors cheered. But don’t have any practical significance on company business.”

Goldberg Fab created this kind of style to chop and change at the same time. Fab started with comrade Fabulis social network, and then start to join the daily deals, then to the whole transformation – focus on the design of the flash sales. He cut the company’s name to Fab. Almost nirvana in general, the company has achieved great success. But in December 2012, Goldberg, suddenly announced the overall company will completely give up flash sales, and to complete e-commerce market. Months after he change idea again, said retains the overall company has its own goods brand and strive to buy custom furniture manufacturers. Many internal projects, the sources said the company are a similar fate, began to give great attention and interest, but later was suddenly aside.

just like that year Jobster staff, overall staff also puzzled for these changes. Whether current or former employees are widely thought to terminate the flash sales mode decision is reckless behavior. “There is a Myth (the Myth) think flash sales model is flawed, and Jason is to guide the direction of the company to better.” Overall company a director said, “the fact is, however, flash sales operation is very good, it is our high growth engine.” “Eggs cannot be put in a basket, can not rely solely on flash sales model. Should develop more business model, which is right. “But Jason directly to give up flash sales, as if it is out of date”.

according to ComScore, Goldberg renounced, moments before flash sales overall flow of web and mobile applications in 2012 reached its peak in November. Number of UV from that site after ten months fell sharply from 5275000 to September 1 million UV, down nearly 75%. Sales slowdown reflects a fall in the number of visitors. When asked about the sharp decline in traffic do you comment, Fab on the one hand, claim that won’t come to announce the company’s internal data, but also said the company more than ever to make money. “How many confusing it!” A person familiar with the company’s financial situation joked, “maybe they mean lose less”.

the Jobster company make painful cuts, Goldberg didn’t handle. “We have heard the news of job cuts, but Jason is denied,” Haug said, “on the eve of Christmas holiday arranged a company the meeting of the board of directors. The meeting was arranged between the glass meeting room inside can be seen the whole office.” Employees in the morning to the company after it found the meeting room with every wall big cuts. “Purge suddenly started, a lot of people off guard”.

Fab cuts also is not good to go. When Goldberg, decided to cut the employees, the management team begged him to review the American side of the business and in both sides layoffs, but it is said that Goldberg refused. The result is that those who had been sent to Europe to work from the United States employee recalled to the United States, they are also ensure the jobs are safe. They went to New York, after a few months they will be fired. “It definitely hurts morale.” Is still in the company as a developer of staff said.

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