Zulily Faces More Job Cuts in Ongoing Restructuring

Zulily’s latest layoffs under new ownership reflect a distressing trend of instability, raising concerns about the company’s future.

zulily layoffs
zulily layoffs

Seattle’s e-commerce giant, Zulily, implemented yet another round of job cuts. Unfortunately, the exact number of employees affected remains undisclosed. What is clear, though, is that those affected by these recent layoffs did not receive any severance packages.

Zulily has undergone multiple rounds of layoffs over the past year and a half, with two of them occurring under its new owner, Regent, a private equity firm based in Los Angeles. This latest staff reduction comes hot on the heels of CEO Terry Boyle’s announcement of his impending departure from the company, effective October 31.

This isn’t the first time Zulily has let go of employees without providing severance. In a prior round of layoffs in June, affected workers were similarly left without support. In fact, an engineering manager who lost their job this week went as far as to express concerns that the company is on the verge of struggling to meet its payroll obligations, as mentioned in a LinkedIn post.

Zulily’s ownership changed hands in May, with Regent taking over from its previous owner, QVC parent company Qurate. Troublingly, GeekWire reported recently that several vendors hadn’t received payments from Zulily following the Regent acquisition.

It’s worth noting that other entities owned by Regent, such as Pearson Online Learning Services, have also undergone layoffs this year.

When Regent acquired Zulily in May, they expressed plans to expand the company’s reach into new markets. Regent’s portfolio includes a variety of businesses, including Club Monaco, Dim Paris, and Redline Bicycles, among others. Since 2015, Regent has acquired more than 30 different businesses.

Zulily’s financial difficulties weren’t a recent development. Even before the acquisition by Regent, the company was facing challenges. In the first quarter of the year, Zulily reported a 17% decrease in revenue, down to $192 million, and an operating loss of $43 million.

Zulily had already laid off employees back in March in an effort to cut costs, and they had a previous round of layoffs about a year ago. Unfortunately, the company’s public relations representatives have remained unresponsive to multiple inquiries from GeekWire over the past several months.

Despite these challenges, Zulily recently made news with its partnership with “Queer Eye” star Jonathan Van Ness. Established in 2010, the company initially gained recognition for offering daily deals on products for moms and kids before expanding its product selection. Zulily went public in 2013, and in 2015, Qurate acquired it for $2.4 billion.

In addition to these changes, Zulily is giving up its lease on its headquarters on the Seattle waterfront.

Gerard Thompson
Gerard Thompson

Gerard Thompson, a seasoned tech industry worker understands the struggles of facing layoffs firsthand. Having navigated the uncertain and daunting world of job loss himself. Gerard is the founder of JustLayoffs.com

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