Casper Sleep is closing down all of its European operations while laying off around “21 per cent of its corporate workforce globally” as it continues to struggle after its IPO.
The online mattress giant announced plans to lay off 78 employees while it pulled the shutters on its European operations in a corporate update this week.
It said that the move would allow it to “focus on achieving profitability” primarily in its native North American business and achieve annualised savings of more than $10 million (£8.1 million).
Employees impacted by the move in North America will receive severance packages, extended medical coverage and career coaching, while employees in Europe will reportedly receive “similar” support though these will change region to region.
This follows a troubled IPO in February, which saw the company achieve a valuation of just $515.2 million (£418 million), around half the $1 billion valuation it was given just a year earlier.
“We announced today further restructuring initiatives related to our global business that will reduce operating costs by over $10 million on an annualized basis, as we remain committed to our timeline to achieve positive EBITDA profitability by mid-year 2021,” its chief executive Philip Krim said.
“We believe our strong balance sheet position, with approximately $116 million in cash as of the end of Q1 2020, continues to provide us with the flexibility and resiliency to weather this dynamic environment and position us for future growth.”
The update also revealed that Casper’s chief financial officer and chief operations officer Gregory Macfarlane would leave the company on May 15.
In the interim Iron Mountain’s former chief financial officer Stuart Brown will take the position.