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Birchbox Cuts 15% of Staff

The company has laid off 50 employees, following the launch of a second in-house line.

On Friday, beauty box business Birchbox laid off 50 employees — 15 percent of its total staff.

“We have learned a tremendous amount about what we need to do to win in the beauty category,” Birchbox chief executive officer Katia Beauchamp said in a statement. “The cuts made today will allow us to reinvest in our biggest opportunities and grow even more quickly in the future. We have a clear understanding of how we can streamline our efforts and operate more efficiently.”

The business is hitting its growth goals and expects to double shop sales, as well as continue subscription growth, according to the statement. “For all those impacted in this reduction there is no thank you that can properly convey the depth of my gratitude,” Beauchamp said. “We will work harder than ever to honor everything you have accomplished here at Birchbox.” A representative for Beauchamp said she declined to comment beyond the statement.

The New York-based company launched its subscription business in 2010. Members receive monthly boxes of custom products based on their beauty preferences. The layoffs follow the launch of Birchbox’s second in-house brand, Arrow, earlier in January. The business also started a color cosmetics line called LOC in 2015, and opened a bricks-and-mortar location in New York.  The company has about $72 million in venture capital backing. It raised its latest round — $60 million — in 2014.

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