Glossier Lays Off One-Third of Corporate Staff

Glossier Announces Workforce Reduction

Glossier, the beauty brand spearheaded by Emily Weiss, a former beauty blogger, has implemented a reduction in force, impacting 80 corporate employees. This information was conveyed via an internal email, a copy of which was reviewed by Modern Retail.

The workforce adjustments, representing approximately one-third of Glossier’s corporate staff, will predominantly affect the company’s technology division.

Strategic Shift in Technology

According to the email from Weiss, the company is modifying its technological approach. The plan involves utilizing external partners for platform components currently managed internally.

The communication acknowledged past missteps, specifically mentioning a prioritization of strategic initiatives that diverted attention from the core beauty business. Executives also admitted to premature expansion of the workforce.

Impact on a Tech-Focused Retailer

These layoffs within the tech team are particularly noteworthy given Glossier’s frequent self-description as a technology company. Over the past two years, Weiss and other leaders have consistently highlighted the company’s dedication to its direct-to-consumer online sales model.

A key focus has been continuous improvement of the customer experience based on gathered feedback.

In-House Technology Development

Previously, Glossier developed its own point-of-sale system and commerce APIs internally. This allowed the brand to provide what was described as a “seamless” customer journey, as stated by former CTO Bryan Mahoney in 2018.

DTC Success and Funding

Established in 2014, Glossier is often cited as a pioneering success story within the direct-to-consumer (DTC) landscape. Last July, the company secured Series E funding at a valuation of $1.8 billion.

Investors included Lone Pine Capital, Sequoia, Forerunner Ventures, and others.

E-commerce sales generally contribute around 80% of Glossier’s total revenue, as reported by the Business of Fashion last July.

Past Challenges and Course Correction

Despite its fundraising achievements, Glossier’s growth has not been without obstacles. In August 2020, the company eliminated all retail positions and closed its physical stores, including its flagship location in New York City.

The brand also faced scrutiny following an open letter from employees of color detailing experiences of racial bias from store managers, leading to a public apology from Weiss.

Return to Physical Retail

Approximately one year later, the company signaled a shift in strategy. It announced plans to utilize the Series E funding to establish three new permanent retail locations in Seattle, Los Angeles, and London, alongside reopening the New York City store.

The intention was to leverage these stores to enhance brand visibility and encourage user-generated content, areas where Glossier had previously excelled through its distinctive aesthetic and social media marketing.

Future Retail Plans

The company’s website indicates that further retail store openings are anticipated throughout the current year, with customers encouraged to “stay tuned” for updates.

Contact Information

Current and former Glossier employees are invited to reach out to Anita Ramaswamy via email at aramaswamy.techcrunch@gmail.com or through the secure messaging application Signal at 480 463 4056.