CafePress Announces Layoffs, Departure of COO and Board Members
After reporting what CEO Fred Durham called "disappointing" fiscal year 2017 results, CafePress has continued with another batch of layoffs, and has parted ways with its chief operating officer and two board members. This comes after a first wave of layoffs in January, when the company let go of 14 employees and Durham slashed his own salary.
CafePress announced in a press release that this restructuring will allow the company to save $3 million more than originally planned, which is a step in the right direction after reporting a 22 percent drop in gross profit in 2017 and a 16 percent drop in net revenue. The company also said that the 7 percent reduction in staff "is tailored to unify and simplify [the company's] organization and improve business performance, profitability, cash flow generation and productivity."
"As previously stated, it has become our top goal for 2018 to return to profitability and stop cash burn," Durham said in the press release. "The first round of cuts made in January put us within striking distance of profitability. With this second round, we believe we have attained the necessary balance to once again be a profitable company. This is a major milestone. We are committed to working as hard as ever to further improve upon this position through both growth initiatives as well as continued enhancements to cost and efficiency."
Robert D. Barton, former chief operating officer, offered his resignation after two years with CafePress in order to pursue other career interests.
"Robert's contribution to the company's production capabilities will always be appreciated," Durham said. "We wish him great success in his future endeavors. We are also grateful for the dedicated service of our two departing board members. We will miss their insight and experience."
The next step for CafePress in its hunt for profitability will be redesigning its website, expanding retail partner channels into new territories and providing fulfillment services to other custom products companies. CafePress also has a partnership with Walmart, which allows it to sell its items through Walmart's e-commerce channel.
CafePress hasn't announced whether it will seek a replacement for Barton, but said that by downsizing its board of directors, the company hopes it will allow the board to operate "more nimbly."