Background
In a recent development, Poshmark, a Redwood City, California-based secondhand apparel marketplace, has announced that it will be laying off a portion of its employees. This news comes two months after the South Korean internet firm Naver completed its acquisition of the company for $1.2 billion.
Layoffs and Job Cuts
According to TechCrunch, Poshmark confirmed that the company is cutting its workforce due to the economic slowdown. However, the exact number of employees affected by the layoffs has not been disclosed. A spokesperson for the company stated that less than 2% of its workforce was impacted, primarily in the U.S.
Company Response
In a statement to TechCrunch, Poshmark’s spokesperson emphasized that the decision to reduce the size of some teams was made to better align with the company’s priorities for the future, given the current economic climate and its return to being a private company. The affected employees were notified this week and will receive financial support, continued full healthcare coverage, and outplacement services.
Industry Trend
The layoffs at Poshmark are part of a broader trend in the tech industry, where companies are downsizing their workforces due to economic pressures. Several other fashion e-commerce companies, such as Everlane and Stitch Fix, have collectively laid off hundreds of employees in recent months.
Company Overview
Founded in 2011, Poshmark claims to have more than 80 million registered users across the U.S., Canada, Australia, and India. The company’s annual gross merchandise volume was $1.8 billion in 2021, with net revenues of $44.4 million in Q3 2022, a 11% year-on-year increase.
Naver Acquisition
In January this year, Naver completed its acquisition of Poshmark for $1.2 billion. The deal marked a significant milestone for the company, which aims to enhance its user experience and expand its platform through Naver’s technology capabilities and financial resources.
New Features and Investments
Since the acquisition, P
