Zulily laid off an undisclosed amount of corporate employees as the Seattle-based online retailer and its parent company Qurate navigate declining revenue.
A company spokesperson confirmed the layoffs but declined to provide details on how many positions were impacted or current headcount.
“Yesterday, we announced to our team members some hard choices we have made for our organization to bring our operating expenses in line with our revenue and position our business for future growth,” the company said in a statement Tuesday.
Laid off workers will receive severance, continuation of some benefits, and outplacement assistance, the spokesperson said.
Zulily previously laid off employees in May. The company employs more than 800 people in the Seattle region and nearly 2,000 total, according to LinkedIn.
Zulily’s revenue dropped 28% to $254 million in the fourth quarter due to lower unit volume, reduced shipping rates, and lower site traffic, according to the company’s earnings report. Revenue dropped 38% for the full year.
Its parent company Qurate Retail Group, which acquired Zulily in 2015, reported a 13% year-over-year revenue decline for the fourth quarter.
Qurate last week said it was laying off 12% of its workforce, or 400 people. Those cuts did not impact Zulily.
Last year Zulily closed a fulfillment center in Pennsylvania, resulting in more than 500 layoffs.
Many e-commerce companies are dealing with slowing growth following online shopping surges during the pandemic.
Qurate CEO David Rawlinson called 2022 a “challenging year for the company” and cited “macro pressure that impacted consumer demand.”
“We have taken action to strengthen the balance sheet, improve execution and aggressively cut costs, including meaningfully reducing excess inventory and undergoing a structural reorganization,” Rawlinson said in a statement last week, as part of the company’s earnings report.
Zulily last year hired former Nordstrom exec Terry Boyle as president and CEO. Boyle replaced Jeff Yurcisin, the former Amazon executive and Shopbop CEO who took over in May 2018 for longtime CEO and co-founder Darrell Cavens.
Zulily went public in 2013 and was acquired by Qurate for $2.4 billion in August 2015.
