Birchbox Cuts 15% of Staff Amid Tech Startup Belt-Tightening
- The beauty subscription startup also pausing Canada operations
- Cuts follows others such as e-commerce startup VarageSale
A Birchbox pop-up in Utah.
Photographer: Tiffany Rose/Getty Images for BirchboxThis article is for subscribers only.
Birchbox Inc., a startup that sells subscriptions for personalized beauty samples, said it’s cutting 15 percent of staff and suspending operations in Canada. The cutbacks, which affect 45 people out of a staff of 300, are the latest sign that technology startups are struggling to create sustainable businesses as venture funding begins to cool.
“The cuts made today will allow us to reinvest in our biggest opportunities and grow even more quickly in the future,” Birchbox co-founder and Chief Executive Officer Katia Beauchamp said in a statement. "Our vision for Birchbox has always been to build a standalone company, and today’s market demands that we reach profitability this year."