Poshmark Lays Off ~2% Of Workforce After Naver Buy Out

Liz Morton
Liz Morton


Poshmark is laying off approximately 2% of it's workforce, with impacted employees being mostly in the US, according to TechCrunch.

Poshmark lays off employees just two months after being acquired by Naver
Poshmark, a Redwood City, California-headquartered secondhand apparel marketplace, laid off 2% of its workforce.

Poshmark, a Redwood City, California-headquartered secondhand apparel marketplace, is laying off a proportion of its 800+ employees. The reduction is coming about two months after South Korean internet firm Naver completed its acquisition of the company earlier this year for $1.2 billion.

Poshmark confirmed to TechCrunch that the company is cutting its workforce due to the economic slowdown but did not disclose the number of people impacted.

β€œWe made the difficult decision to reduce the size of some of our teams to better align with our priorities for the future, the current economic climate and our return to being a private company,” a spokesperson at Poshmark told TechCrunch. β€œWe are incredibly grateful for the contributions of the talented people in the roles that were impacted.”

It also did not disclose the number of total employees at the company, nor whether the layoffs would be in the U.S. only or globally. On its LinkedIn Profile, it describes itself as having β€œover 800” employees.

A Poshmark spokesperson later confirmed to TechCrunch that the layoffs would be impacting about 2% of their employees, mostly in the US, but did not give an exact number. Poshmark is offering each employee financial support, continued full healthcare coverage and outplacement services.

While this certainly does not rise to the level of other recent tech and ecommerce layoffs, like at Amazon and eBay, it will no doubt be a concern for sellers on the platform who have been wondering what the recent Naver takeover of the company may bring.

Poshmark recently announced a price increase for PoshPost shipping from $7.67 to $7.97.

Poshmark Increasing PoshPost Shipping Price February 23
Poshmark increasing cost of PoshShip shipping by $0.30 from $7.67 to $7.97, effective February 23, 2023.

Users also report seeing an increase in 3rd party ads across search, category, listings, and checkout pages.

Are You Seeing More Ads On Poshmark?
Poshmark users concerned about increase in 3rd party ads, question how Naver will further monetize the site.

Again, while those changes may seem small, taken together with even minor layoffs it paints a picture that Naver may be wasting no time in working to cut costs and increase revenue since completing the acquisition in January.


Liz Morton Twitter Facebook LinkedIn

Liz Morton is a seasoned ecommerce pro with 17 years of online marketplace sales experience, providing commentary, analysis & news about eBay, Etsy, Amazon, Shopify & more at Value Added Resource!

Never Miss A Headline!