Sources say Casper has laid off dozens of employees, including three C-level executives: its chief marketing officer, chief technology officer and chief operating officer. The mattress company declined to comment.
The round of layoffs, employees were informed on Friday, largely affected the retail and operations teams, indicating the business is undergoing a broad restructuring. Severance packages were offered to laid-off employees.
Notably, affected officials were recently added to the team. CTO Ben Clarke has been with the company since July 2019, while former CMO Lisa Pilate joined Casper in March 2020. Casper’s COO Charles Liu had only been with the company for eight months before this round of layoffs.
Casper’s CFO remains at the startup, but that role has also led to some significant business. In its April 2020 business update, Casper announced that its CFO and COO at the time, Gregory MacFarlane, was leaving the company. Interim CFO Stuart Brown eventually took over the role, and resigned three months later. The latest CFO, Michael Monahan, assumed office effective August 31, 2021.
A year ago, Casper announced it was closing its European operations, cutting 21% of its global workforce. The move was attributed to Casper’s new goal of “gaining profits”, which included focusing on North American operations.
The business then indicated that the temporary closure of its retail stores had an impact on its overall direct-to-consumer channel, forcing it to take steps to reduce operating costs. Now, the startup is taking a step forward by eliminating roles within its retail and operations teams.
A founder in the direct-to-consumer space, who spoke directly with the company on condition of anonymity due to a lack of knowledge, said Casper’s layoffs could also be a response to iOS 14.5, Apple’s latest update. is software. Apps that track users’ data without permission. This setting restricts the advertising data that companies can access, making it difficult to justify budgeting and understand the efficacy of their sales strategy.
“Performance marketing through paid channels, especially Facebook and Instagram, is a win-win right now,” the person said. “So, if they were really dependent on that channel that could be something that is affecting their sales.”
Casper priced its IPO shares at $12 and began at $14.50 per share in February 2020 amid the COVID-19 pandemic. The company lost about 72% of its opening price before recovering, reaching a recent peak of around $11 in February. 2021. Today, the company is trading above $5, a drop of more than half since its opening.