Casper lays off 21% of staff, CFO to exit

Dive Brief:

Direct-to-consumer mattress brand Casper announced Tuesday that Greg Macfarlane, CFO and COO, will leave the company on May 15 "to assume a senior executive role outside of the Sleep industry," according to a company press release.
The company also laid off 78 employees, or 21% of its global corporate workforce, and is going to "wind down" its European unit, which it expects to complete by the end of this year. Affected employees in North America will receive severance, extended medical coverage, career coaching and new job placement support, according to the company. European employees will receive similar packages.
The company also named a new chief marketing officer, Lisa Pillette, who previously worked with Lacoste, HSN and Ralph Lauren. Pillette replaces Jeff Brooks, who left the company late last year.

Dive Insight:

Like much of the industry, Casper temporarily closed its stores in mid-March and as of Wednesday, stores had not reopened.

The company has taken action to help stem losses and minimize operating costs. Earlier this month, the company furloughed all of its retail employees, and now has laid off 21% of its global corporate workforce and begun winding down its European business. Altogether, Casper expects these actions to result in about $10 million in annualized savings.

"We are making a series of difficult decisions to preserve the long-term resiliency and flexibility of the Company," CEO Philip Krim said in a statement. "These actions enable us to focus on the strength of our North American business during this uncertain time and remain committed to our customers."

Krim, however, noted that the company has seen "significant strength" in its e-commerce business in Q2 to date, "well above expectations," and affirmed Casper’s first quarter results should be in line with previously announced guidance. The company also noted that it had about $116 million in cash at the end of the first quarter.

As it works to mitigate impacts of the global pandemic to business, Casper is now also resetting its suite of execs. The company has appointed Stuart Brown to take on the chief finance role in the interim while the company looks for a permanent replacement. Brown previously worked in finance roles at Iron Mountain Inc. and Red Robin Gourmet Burgers. To oversee company operations on an interim basis, Casper appointed chief commercial officer Emilie Arel, who joined the company just over four months ago. Both appointments take effect May 15.