Zulily Layoffs: Why Has The Online Retailer Laid Off An Undisclosed Number Of Employees?

Qurate Retail, Inc.'s (QRTEA) e-commerce retailer, Zulily, is undergoing what it is called “organizational changes,” which includes laying off an undisclosed number of employees, according to an email that was sent to Retail Dive.

The email read, “At Zulily, we’re always testing, learning, and innovating to provide a differentiated experience to our customers. On Wednesday, we announced to our team members organizational changes designed to accelerate focus and growth in areas of innovation that will help us best meet the evolving needs of our customers and other key stakeholders.

“Unfortunately, this restructuring comes with team member impact. Impacted team members will be provided with support for their transition."

While the exact number of employees laid off is unknown, they are said to have occurred at Zulily’s Seattle and Columbus offices, Geek Wire reported.

In an internal memo to employees, obtained by the news outlet, CEO Jeff Yurcisin, said that Zulily had come to “a critical inflection point” that required “streamlining” of its “Merchandising and Studio organizations.”

Zulily has seen its profits fall as it reported a 5 percent drop in revenue last quarter to $397 million. The company has been known for its flash sale techniques, which have grown out of favor with consumers, Retail Dive reported.

During its May earnings report, Zulily indicated that it was moving toward its app and away from its email marketing as it looks for “more engaged and valuable” customers. The company also said it is looking to grow its global sales, which it said at the time made up about 6 percent of its sales in Q1. The company announced that it was shipping to 46 countries in May.

Shares of Qurate Retail stock were up 1.41 percent as of 3:27 p.m. ET on Friday.