Brian Lee, a co-founder and CEO, has said the company will eliminate 80 positions in the first quarter, just over 14% of its 552 employees. These moves will position the company for growth and allow its continued evolution into some offline channels.
Most of the job cuts will come as a Texas call center is automated, but the highest-profile departure will be David Parker, CFO and COO. Cofounder Sean Kane, who was president and focused on a number of areas of the business, including digital, customer service, sales and marketing, is also stepping back but is going to stay on as an adviser as he starts a new company.
The brand, which includes diapers and baby wipes, is sold through Target, Costco, Whole Foods and other retailers and will be looking for more real-world outlets where it can connect directly with customers.
Talk of Honest's possible sale as been rampant in recent months. Rumors have included a potential initial public offering as well as the possible purchase of the company by larger consumer companies such as Johnson & Johnson and Unilever.
The five-year-old company was founded by actress Jessica Alba, Christopher Gavigan, Kane and Lee and seeks to deliver, as its web site says, “savvy style, sustainability and extraordinary service and convenience all wrapped in a passion for social goodness, tied with a bow of integrity.” It is said to have sales of about $300 million as it now pivots to expand its business.