As announced today, Fab, the online platform for designer flash sales, will practically close its German base in Berlin and centralize its operations at its New York headquarters. This will eliminate more than 100 positions in Fab's Berlin office due to redundancies by the end of 2013. Around 30 of the Berlin staff will be asked to move to New York with the company.

Up until now Fab ran two separate flash-sales businesses in the U.S. and in Europe. As apparently there was “A high percentage of supplier and SKU overlap between the two regions” and “Large teams in both locations doing much of the same thing,” Fab now will be consolidating much of its merchandising, marketing, and operations teams into a single global team in New York.

On the company-run blog, Jason Goldberg, founder and CEO at Fab, stated: “While the resultant efficiencies will add immense value to our growing global customer base, this change will also eliminate more than 100 positions in our Berlin office due to redundancies by the end of 2013. Fab remains 100% committed to the European market and the Fab Berlin office will continue to support our growing EU presence with a more tightly focused team in place.”

Earlier this year Fab announced that it was transforming its business model from flash sales, to being a comprehensive online lifestyle shop, in order to enable customer expectations such as fast, free shipping and free returns on a great assortment.
Moreover, it was announced last month that Fab raised $150 million by investors with recent investments from Tencent of China and ITOCHU of Japan, and more Asian partners on the way.

The company secured that it will continue to maintain local customer service, returns, shipping and logistics, finance, IT and HR positions in Europe at its Berlin and Eindhoven offices.