Birchbox lays off 15% of staff in "difficult" decision

Co-founder and CEO Katia Beauchamp said company will honour work of those affected

US beauty subscription service and e-commerce company Birchbox has laid off 15% of its workforce and suspended business in Canada.

The decision was described as “difficult” by the company’s Co-founder and CEO Katia Beauchamp. In a statement, Beauchamp said: “In five years, we have built an immensely successful business and achieved rapid growth – and these people helped create Birchbox as we know it. They are our friends and we will always be grateful for their invaluable contributions. But we have learned a tremendous amount about what we need to do to win in the beauty category. The cuts made today will allow us to reinvest in our biggest opportunities and grow even more quickly in the future. We have a clear understanding of how we can streamline our efforts and operate more efficiently.”

Beauchamp explained that the cuts were not a reflection of a flagging business. She added: “We are hitting all of our growth goals and expect to nearly double our shop sales, while still experiencing significant growth in subscriptions in 2016. We will do this as a leaner, stronger and more resolved company.”

According to Bloomberg Business, the cuts will affect 45 people out of 300. Beauchamp added: “For all those impacted in this reduction there is no thank you that can properly convey the depth of my gratitude. We will work harder than ever to honor everything you have accomplished here at Birchbox."

Meanwhile, in an interview with Racked, Beauchamp was reported to have said the company had suspend its Canada operations because of the steep shipping prices to the country.

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