- Casper is laying off 78 employees, or 21% of corporate staffers, to save an estimated $10 million a year, the company said on Tuesday.
- It did not specific which parts of the business are hardest hit, but the company said it’s winding down operations in Europe.
- “We are making a series of difficult decisions to preserve the long-term resiliency and flexibility of the company,” said Casper’s cofounder and CEO Philip Krim.
- Casper’s chief financial officer and chief operating officer is also leaving.
- Casper has a history of losses, as revealed at the time of its IPO earlier this year.
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Mattress retailer Casper is laying off 78 employees, or 21% of its corporate workforce, according to the company.
The company, which has a history of losses, is only the latest consumer business to shear off large numbers of staffers amid the economic crunch.
Casper said the job cuts would save $10 million a year. But that’s a small fraction of the cash the company had been going through even before the coronavirus pandemic hit. Last year, Casper burned through $99 million from its operations and capital expenditures, according to filings it made with the Securities and Exchange Commission around its initial public offering earlier this year.
The company did not provide details on what parts of the business are hardest hit by the layoffs, though it said it’s winding down operations in Europe through the end of the year. Casper has corporate offices in Berlin and London.
The affected employees will receive severance, extended health benefits, and support finding their next job.
“We are making a series of difficult decisions to preserve the long-term resiliency and flexibility of the company,” Casper’s cofounder and chief executive officer Philip Krim said in a press release. “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.”
Greg Macfarlane, Casper’s chief financial officer and chief operating officer, is also leaving the company to take a job outside the sleep industry, the company said. It has appointed an interim chief financial officer as the search for a replacement continues.
Casper had closed its stores and placed its retail associates on paid leave last month. But the additional corporate cuts suggest that those measures were not enough to offset the effects of the coronavirus pandemic on its business.
Selling mattresses online and directly to consumers may seem in some ways well-suited to a quarantine society, but people’s spending habits are also changing. US retail sales in stores and online are falling at a breakneck pace, the Commerce Department said.
“Casper continues to adapt quickly to this unprecedented global moment and is well-positioned to do so given our leadership in e-commerce, flexible operating model, and strong balance sheet,” Krim said in a statement.
“We are pleased with the performance we have seen in our e-commerce business in recent weeks, and will continue taking proactive measures focused on optimizing our business model and cash management,” he said.
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SEE ALSO: Former employees of Quip, a $170 million electric toothbrush startup that cut 10% of staffers weeks before the coronavirus hit, say a range of issues could frustrate its ability to ride out the pandemic
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