Casper shutting down European ops, cutting staff; CFO/COO leaving
Casper Sleep Inc. announced more cost reductions amid the COVID-19 pandemic including a workforce restructuring and a wind-down of its European operations.
The fast-growing mattress company, which went public in February, also said that Greg Macfarlane, CFO and COO, is leaving the company, effective May 15, to take a senior executive role outside of the sleep industry. Casper said that his departure is not related to “any financial performance, policy, or control issues or any disagreements on accounting or financial reporting matters.”
Stuart Brown is joining Casper to assume the role of interim CFO while the company searches for a permanent replacement. Brown served as executive VP and CFO of Iron Mountain Inc. Emilie Arel, Casper’s president and chief commercial officer, will act as COO on an interim basis. Both appointments are effective May 15.
Additionally, Lisa Pillette is joining Casper as chief marketing officer. She previously held senior marketing roles at Lacoste, HSN and Ralph Lauren.
Casper’s workforce restructuring will reduce the size of its team globally and includes the wind-down of its European operations by the end of 2020 to concentrate on the strength of the North American business. In total, the will impact approximately 78 employees, or about 21% of its corporate workforce globally, and result in more than $10 million in annualized savings.
As part of the Company’s employee relief efforts, impacted employees in North America will receive severance, extended medical coverage, career coaching, and new job placement support. Impacted employees in Europe will receive similar transition packages tailored for their regions. (Casper previously announced a retail employee furlough program as its stores remain closed during the COVID-19 crisis.)
“We are making a series of difficult decisions to preserve the long-term resiliency and flexibility of the company,” said Casper CEO Phillip Krim. “These actions enable us to focus on the strength of our North American business during this uncertain time and remain committed to our customers who continue to rely on us for a better night’s sleep—today and well into the future.”
According to Casper, it has $116 million in cash as of end Q1 2020, which it believes will help in weathering the pandemic crisis. The company also cited “significant strength” in its e-commerce business in Q2 to date, with sales “well above expectations.”
“Casper continues to adapt quickly to this unprecedented global moment and is well-positioned to do so given our leadership in e-commerce, flexible operating model, and strong balance sheet,” said Krim. “We are pleased with the performance we have seen in our e-commerce business in recent weeks, and will continue taking proactive measures focused on optimizing our business model and cash management.”