Poshmark, the social resale marketplace, has laid off less than 2% of its workforce. The layoffs were largely due to the fact that the company recently became a private company again.
According to a spokesperson, some employees in finance, accounting, and human resources were impacted after their roles were deemed no longer necessary. Poshmark currently employs over 800 people globally.
The decision to downsize was a difficult one, but necessary to better align the company with its priorities for the future and the current economic climate. Despite the layoffs, Poshmark is grateful for the contributions of the affected employees.
Poshmark was officially acquired for $1.2 billion by South Korean internet company Naver in January, and Naver said at the time that Poshmark would maintain its employee base. However, the layoffs occurred after the acquisition was finalized.
Poshmark and Naver have plans to focus on increasing conversion rates, improving engagement and discovery, and becoming a leader in livestream commerce. The competition in the resale industry continues to grow, with companies like Hanna Andersson, Kate Spade New York, J. Crew, Canada Goose, and Francesca’s launching their own resale programs.
The National Retail Federation’s annual conference discussed the opportunities the resale industry offers amid an uncertain economic environment.