Zulily made more job cuts Wednesday, GeekWire has learned, the company’s second round of layoffs in the past two weeks and the latest move toward an apparent shutdown. Affected employees received a memo Wednesday notifying them that it was their last day of employment. The online retailer, owned by private equity firm Regent, previously told employees on Dec. 7 that it would begin job cuts starting Feb. 7. It also submitted filings with state employment officials, stating the company would lay off more than 800 people and close three offices beginning Feb. 7. But last week it surprised some workers,… Read More Read More GeekWire
Zulily made more job cuts Wednesday, GeekWire has learned, the company’s second round of layoffs in the past two weeks and the latest move toward an apparent shutdown.
Affected employees received a memo Wednesday notifying them that it was their last day of employment.
The online retailer, owned by private equity firm Regent, previously told employees on Dec. 7 that it would begin job cuts starting Feb. 7. It also submitted filings with state employment officials, stating the company would lay off more than 800 people and close three offices beginning Feb. 7.
But last week it surprised some workers, notifying them that they were losing their jobs earlier than planned.
The company did the same this week to another batch of employees.
“We regret to inform you that based on business circumstances, this letter replaces and supersedes the December 7 notice, and serves as notice that your employment with Zulily will end on December 20, 2023 (the “Termination Date”),” reads the email sent Wednesday to affected employees, obtained independently by GeekWire.
It’s not clear how many employees remain following the latest cuts. We’ve contacted Regent for comment on the latest notice. The firm has not responded to multiple emails from GeekWire about developments at Zulily over the past several months.
“Farewell Zulily,” wrote Rich Davenport, a staffing manager and 6-year veteran of Zulily, in a LinkedIn post on Wednesday. “With the nearly everyone at the company laid off today, or those that have been let go in the weeks and months past, there is a plethora of talent available to work immediately and help future organizations succeed.”
Zulily’s website and app, meanwhile, are not accessible. The company’s customer service phone line is not operational and directs callers to an email address. Some customers say credit they had with Zulily is now gone, and others are wondering if they’ll receive orders.
Last week, the Zulily credit card was no longer being accepted for purchases as Zulily’s online store, according to Synchrony Bank.
The memo sent Wednesday mimics last week’s notice to employees, with a few differences. The latest memo tells employees that they will be paid in wages through Feb. 7. Last week’s memo did not address any payment beyond Dec. 13.
Last week’s email also told workers that they were not employed at “an affected site of employment as defined by the WARN Act.” The latest memo does not include that language.
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The Worker Adjustment and Retraining Notification (WARN) Act, a federal law passed in 1988, aims to protect workers by typically requiring either a written warning at least 60 days before a layoff or closure, or 60 days of severance if advanced notice is not provided, for companies with 100 or more full-time employees.
It’s not clear how Zulily is determining what qualifies as “an affected site of employment,” as stated in its email to employees last week.
The past several weeks mark a stunning downfall for what was once a cornerstone of Seattle’s tech ecosystem. Zulily launched in 2009 and grew rapidly as it gained traction by offering daily deals on products for moms and kids. It went public in 2013 and was valued at more than $7 billion a year later.
QVC parent Qurate acquired the company in 2014 for $2.4 billion.
Regent, which has acquired more than 30 businesses since 2015, acquired Zulily earlier this year and said it planned to grow the company in new markets.
But instead the firm has laid off hundreds of employees and plans to close Zulily’s headquarters in Seattle and two warehouses. It held a “going-out-of-business” sale earlier this month. Zulily is also facing lawsuits from vendors alleging unpaid invoices.
Zulily last week filed suit against Amazon, alleging that the e-commerce giant’s tactics made it impossible to compete on price without jeopardizing its relationships with key suppliers. Regent is not mentioned in the lawsuit.
Read the full memo sent to employees on Wednesday below.
December 20, 2023
As you know, on December 7, 2023, we provided you with notice informing you that your employment relationship with Zulily would end on February 7, 2024, or within the 14-day period commencing on that date.
We regret to inform you that based on business circumstances, this letter replaces and supersedes the December 7 notice, and serves as notice that your employment with Zulily will end on December 20, 2023 (the “Termination Date”). You will receive your final paycheck, which includes any and all wages due through February 7, 2024 (inclusive of WARN notice pay), in accordance with Zulily’s regular payroll practices, and/or applicable state and federal law. Stated differently, you will be paid in a lump, which covers all wages that would have been paid to you through February 7, 2024.
If you participate in the Zulily group health insurance plans, your coverage under those plans will cease effective December 31, 2023, unless further extended under the Consolidated Omnibus Budget Reconciliation Act (COBRA). Information about the availability of continued coverage under COBRA will be sent to you separately. Any other employment benefits in which you participate will cease on your Termination Date.
Below and attached is important separation information, including required notices by state.
We thank you for your service to Zulily and wish you well in your future endeavors.
Sincerely,
Richard Ormond
Manager and Chief Restructuring Officer
