The online delivery service chopped 160 personnel from its employee roster in an attempt to stay afloat with a new business model that waylays consumer delivery in favor of strictly B2B deliveries. Whether the new strategy pays off, in what is an increasingly crowded space, is unclear. What is clear is the effect of all this on the employees' psyche.
Nobody enjoys losing a job.
But some employees don't have a choice. As Urbanfetch's deal with rival Kozmo fell apart, the company scrambled to reduce its expenses, which meant layoffs were eminent. Later rumors among Alley insiders circulated that even the company's CEO, Ross Stevens was in jeopardy of losing his job. Officials at Urbanfetch could not be reached to comment on whether employees were given notice prior to their dismissal. The source said Urbanfetch allocated compensation packages to some workers.