Casper Names a New CMO and Lays Off 21% of Workforce Due to Covid-19

Lisa Pillette, a retail veteran who has worked with brands like Lacoste, HSN and Ralph Lauren, is taking on the CMO role, which has been vacant since Jeff Brooks left the company for insurance startup Lemonade at the end of 2019.

Pillette’s appointment is not the only executive change coming to the company: Greg Macfarlane, CFO and COO, is also leaving the company, for reasons unrelated to Covid-19; he’s departing “in order to assume a senior executive role outside of the sleep industry,” according to a statement from Casper.

Though Macfarlane’s departure is unrelated to the coronavirus pandemic, some of the other changes coming to Casper are. The brand has laid off 78 employees, or 21% of its global corporate staff, including furloughing all its retail employees while stores are closed. Laid-off employees “will receive severance, extended medical coverage, career coaching, and new job placement support.” Casper is also “winding down” its European operations, and employees affected there will receive similar benefits tailored to their region.

A statement from the company said that these moves are part of Casper’s prioritization of achieving profitability and will result in about $10 million in annual savings.

“We are making a series of difficult decisions to preserve the long-term resiliency and flexibility of the Company,” Casper 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.”

Despite the news, there are bright spots for Casper: ecommerce performance during Q2 has done better than expected, and the company said it is on track to achieve profitability by mid-next year.

“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.”

Casper’s had a rocky start to the year: An IPO filed in January valued the company at nearly half of its one-time $1.1 billion valuation. Since opening at $13.50 a share, Casper’s stock price had dropped to $6.30 as of press time.