Casper Layoffs: CMO, CTO, and COO Depart

Casper Announces Significant Workforce Reduction

Reports indicate that Casper has implemented layoffs affecting a substantial number of employees. Included in these reductions are three executives holding C-Level positions: the chief marketing officer, the chief technology officer, and the chief operating officer.

Impacted Departments and Severance

The layoffs, which were communicated to staff on Friday, primarily targeted teams within the retail and operations sectors. This suggests a potential broader restructuring initiative is underway within the company. Those employees affected by the cuts were provided with severance packages.

Recent Executive Tenure

It is noteworthy that the executives who were let go had all joined Casper relatively recently. Ben Clark, the former CTO, had been with the company since July 2019. Lisa Pillette, the previous CMO, began her tenure in March 2020.

Charles Liu, the former COO, had only been employed by Casper for eight months prior to these layoffs.

CFO Role Instability

While the Chief Financial Officer position remains filled, it has experienced considerable turnover. In April 2020, Casper announced the departure of Gregory Macfarlane, who held both the CFO and COO roles at the time.

Stuart Brown initially served as interim CFO before resigning after three months. Michael Monahan currently holds the CFO position, having assumed the role on August 31, 2021.

Previous Restructuring Efforts

Over a year ago, Casper announced the closure of its European operations, resulting in a 21% reduction of its global workforce. This decision was attributed to a renewed focus on achieving profitability and prioritizing North American markets.

Retail Store Closures and Cost Minimization

The company previously indicated that temporary retail store closures had negatively impacted its direct-to-consumer sales channel. Consequently, steps were taken to reduce overall operating expenses. Now, the company is further streamlining operations by eliminating positions within its retail and operations teams.

Potential Impact of iOS 14.5

An anonymous founder in the direct-to-consumer industry suggested that Casper’s layoffs may also be a response to Apple’s iOS 14.5 update. This software restricts app tracking of user data without explicit permission.

This change limits the advertising data available to companies, potentially making it more difficult to justify marketing budgets and assess the effectiveness of sales strategies.

“Currently, performance marketing via paid channels, particularly Facebook and Instagram, is experiencing inconsistencies,” the source stated. “A heavy reliance on these channels could be contributing to a decline in sales.”

IPO Performance and Stock Decline

Casper initially priced its IPO shares at $12 and debuted at $14.50 per share in February 2020, coinciding with the onset of the COVID-19 pandemic. The stock price subsequently fell by nearly 72% from its opening value before partially recovering.

It reached a recent high of almost $11 in February 2021. However, the company’s stock currently trades at just above $5, representing a decline of more than 50% from its initial public offering price.