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The cuts affect 78 employees. Casper is looking to focus on North America, and will be winding down its Europe operation by the end of the year, according to a statement from the company. The layoffs and wind down of the European operation will “result in more than $10 million in annualized savings, and are part of the Company’s overall focus on achieving profitability.”
Furloughs for retail employees were also announced on March 30. The company temporarily closed its retail stores as a result of the COVID-19 pandemic.
“We are making a series of difficult decisions to preserve the long-term resiliency and flexibility of the Company,” CEO Philip Krim said in a statement. “These actions enable us to focus on the strength of our North American business during this uncertain time and remain committed to our customers who continue to rely on us for a better night’s sleep—today and well into the future.”
The layoff announcement also came with news of executive changes. Most notably, Greg Macfarlane, the company’s CFO and COO, will leave Casper on May 15, the company said.
Casper hasn’t had an easy time since it went public earlier this year. It saw its valuation slashed as it went from a private company to a public one, and its stock price is well below its IPO price. (Casper was trading at $5.91 after hours on Tuesday. It priced its shares at $12 for its IPO in early February.)
Still, Krim said in the statement that the company has seen e-commerce sales beat expectations, and expects its results for Q1 of 2020 to be in line with the net revenue and adjusted EBITDA guidance the company gave on its last earnings call.
“We have seen significant strength in our e-commerce business in Q2 to date, with e-commerce sales well above expectations and multi-year high e-commerce marketing efficiency, thanks in part to the changing consumer behavior and dislocations in the media landscape,” Krim said in the statement.
Illustration Credit: Li-Anne Dias