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The day of reckoning for Fab flash sale employees has arrived. This morning, the site's CEO penned an open letter explaining why Fab has let go of another 101 employees. As he explained, the company is putting "tens of millions of dollars" towards its new focus—the curation of quirky merchandise and non-flash-based commerce—and to balance that outlay, they are letting go of staff that are "either legacies of our former flash-sales business model or are part of current processes that can be managed with innovative technology and fewer people."
Will the rest of the flash sale industry follow Fab's lead? That remains to be seen, though this certainly isn't a good sign for business.
· The Path To Profitability @Fab [Betashop via]
· Fab's New Flash-Sale-Free Site Means Layoffs [Racked]