Israeli robotics retail logistics platform developer Fabric has announced that it is adapting its organizational structure to a new strategy and laying off 40% of its work force. The company has 300 employees meaning that it is shedding 120 people. In addition cofounder and CEO Elram Goren is leaving his post and he will be replaced by COO Avi Jacoby. Fabric said it will be offering those employees leaving an expanded compensation package and support in finding new jobs.
The company, which was founded in 2015 by the brothers Elram and Eyal Goren, Ori Avraham and Shay Cohen, has reportedly changed its strategic focus in recent weeks. Fabric will now focus on developing a model that enables companies to push products, with both hardware and software. At present the company operates the installations themselves. Fabric said, "The new strategic focus will expand the value offering that the company provides to retailers through a product that studies the market and listens to customers and their needs."
Jacoby said, "The company's change in focus that we recently announced requires us to also adapt the structure of the company. Naturally, a company that is focused on offering value with its product is significantly different from a company focused on providing robot collection services."
In its previous model, Fabric set up warehouses that were operated by the company and provided services for customers. It became clear that this activity and model were not efficient and worthwhile. In the new model, Fabric will sell the robots to the supermarket chains, which will operate them themselves.
In 2021, Fabric raised $200 million in a Series C financing round at a company valuation of over $1 billion, having raised $110 million in 2019.
Published by Globes, Israel business news - en.globes.co.il - on July 13, 2022.
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