Several sources confirm Nasty Gal has laid off up to 27 employees in the last week. “Business is down dramatically and leadership has been in panic mode for months,” according to one source. #GIRLBOSS author and CEO Sophia Amoruso told WWD last Friday that the company is making some “strategic changes.”
The L.A. shopping startup let go over 20 employees last week, according to WWD. Another source says this number is actually 27, including several execs, PR and tech staff. Nasty Gal laid off another four employees in its Kentucky-based fulfillment center last week, as well, according to an anonymous tip. Nasty Gal employed about 280 people at the end of 2013 so these layoffs account for over 10 percent of staff cuts.
As one source tells it, “Nasty Gal is in the middle of a massive reorganization and has hired several high level employees but has decided to let go of 27 employees today.”
We reached out to Amoruso as well as her PR team for a response. Neither have responded but a spokesperson outside of the company confirmed in a phone conversation that the company was low on PR staff at the moment and she was helping out in the interim.
In addition to the layoffs, there are indications that the company has other issues. Just 38 percent of employees approve of the CEO on its Glassdoor page and only 30 percent of employees would recommend a friend work for the company. One former employee’s review of the company includes pros like snacks and lots of parties. The cons seem to paint the company as not rewarding talent:
I have never been around so many talented, inspiring people who are held back and disrespected. Success is measured by not only the amount of money a company makes, but the type of culture it maintains and reputation it creates. To hear from people who still work there, that they hate going to work, they are undermined constantly and as a result are disconnected from the brand is truly sad. Nasty Gal had so much potential to be a great brand, but kinda blew it. Not only losing great employees who built the brand, but lots of customers along the way.
Another former employee gave the company just two stars on Glassdoor and said the company had spent too much money on things like decor instead of salaries. The reviews have other uncomplimentary things to say about a lack of company vision, poor follow through and leadership.
We’ll let you know if the company or CEO does get back to us about the company layoffs or employee culture.
Update – We have just received an official statement from Amoruso:
We made some changes yesterday in order to strategically re-organize
the business to fit our vision of the future. We are building a
powerful brand that leads the market and are committed to creating
something that has never been created before. We are excited to open
our first two stores in the near future and continue to build the team
to support that growth.
Part of these changes were to work exclusively with agencies on the PR
side, which we have done in the past and we know performs for the
business. Our Technology team was affected as well. I’m hell-bent on
Nasty Gal continuing to be great at what we always have and raising
the bar for what an American fashion brand can achieve.