Modsy, An e-commerce company that creates 3D renderings of custom spaces has confirmed this to theinformationsuperhighway that it fired a number of employees. In addition, some of his executives, including CEO Shanna Tellerman, will cut their salaries by 25%. theinformationsuperhighway first heard of a source from the layoffs. Confirmation of the cuts by the company is coming amid a wave of layoffs in the technology and startup community.
In a statement from CEO Shanna Tellerman To theinformationsuperhighway, Modsy said, "[i] In order to maintain sustainable business in these unprecedented circumstances, we made a round of layoffs and ended a number of designer contracts this week." In the same statement, the company reaffirmed its confidence in its “long-term growth plans”.
Modsy did not respond immediately when asked how many people were affected by the dismissal. To update: The company declined to share the number of employees affected.
The startup is supported by investors such as TCV, Comcast Ventures. Norwest Venture Partners, GV, BBG Ventures, according to crunchbase data. To date, $ 70.8 million of known capital has been raised.
Modsy focuses on people who want to beautify their home by better visualizing the new furniture they want to buy. Users can enter the dimensions of their living room and add budget and style preferences. Modsy helps them design custom designs and find furniture that literally fits.
The layoffs show that customers' appetites could change. Home improvement platform last week Houzz confirmed that it has scratched plans to manufacture custom furniture for sale. In addition, 10 employees were fired at three locations: in Great Britain, Germany and China. Houzz is comparatively bigger than Modsy, with a valuation of around $ 4 billion. However, scratching the internal plan, which would likely have raised more capital, is another data point for how e-commerce companies are currently struggling to get consumers to spend on items other than beans, alcohol, and bread starters.
In retrospect, there were rumors that the company was cutting staff. A number of Current Ratings Layoffs on the Glassdoor page with a review dated March 25, 2020 calling them "bulk"; Our original source on the company's recent cuts also found its breadth.
You can find other social media posts some notice more than one wave of layoffs. theinformationsuperhighway has not confirmed whether the latest layoffs are the first of two or just the first cut.
Just over 10 months ago, the company was in a completely different mood. Already in May 2019The Modsy CEO said that "space for home design, the inspiration category, is flourishing".
"Pinterest After the IPO, every television broadcaster appears to enter the home design category, ”she said. "In the meantime, e-commerce websites have hardly changed since the Internet was launched."