Casper has laid off dozens of employees, including three senior executives: its chief marketing officer, chief technology officer and chief operating officer, according to sources. The mattress company declined to comment.
The spate of layoffs, communicated to employees on Friday, has largely affected retail and operations teams, signaling the company may undergo a broader restructuring. The laid-off employees were offered severance packages.
Notably, the executives affected were all fairly recent additions to the squad. CTO Ben Clark has been with the company since July 2019, while former CMO Lisa Pillette joined Casper in March 2020. Casper COO Charles Liu had only been with the company for eight months before this round of layoffs.
Casper’s CFO remains at the start-up, but that role has seen significant turnover as well. In an April 2020 business update, Casper announced that Gregory Macfarlane, his CFO and COO at the time, was leaving the company. Interim CFO Stuart Brown finally accepted the job and resigned three months later. The last CFO, Michael Monahan, took office on August 31, 2021.
Over a year ago, Casper announced it was shutting down operations in Europe, cutting 21% of its global workforce. This decision was then attributed to Casper’s new goal of “achieving profitability”, which included a focus on North American operations.
The company then hinted that the temporary closure of its retail stores had impacted its overall direct-to-consumer channel, forcing it to take steps to minimize operating costs. Now, the startup is going even further by eliminating roles within its retail and operations teams.
A founder of the direct-to-consumer space, who spoke on condition of anonymity due to her lack of first-hand knowledge of the company, said Casper’s layoffs could also be a response to iOS 14.5, the Apple’s latest software that will crack down on apps that track user data without permission. The setting restricts the advertising data that businesses can access, making it more difficult to justify the budget and understand the effectiveness of their sales strategy.
“Performance marketing through paid channels, especially Facebook and Instagram, is wobbly right now,” the person said. “So if they really relied on that channel, it could affect their sales.”
Casper valued his IPO shares at $ 12 and debuted at $ 14.50 a share just as the COVID-19 pandemic gained momentum in February 2020. The company plunged nearly 72% by relative to its open price before recovering, hitting a more recent high of nearly $ 11 in February. 2021. Today, the company is trading at just over $ 5, down more than half since opening.