Online clothing retailer ModCloth, which specializes in vintage designs, recently laid off 15 percent of its staff, or approximately 70 employees, TechCrunch reports. The layoffs affected employees at all three company offices, in San Francisco, Los Angeles and Pittsburgh.
Last year, Fast Company named ModCloth one of its "Most Innovative Companies 2013," and reported that the company was growing at over 50 percent annually. Founders Eric Koger and Susan Greg Koger also recently raised over $25 million, funding an expansion of the company.
Perhaps the cuts are a sign that the expansion was an overreach.
ModCloth told TechCrunch last year that it saw more than $100 million in revenue and was increasing its focus on mobile. That publication posits that the cuts "represent an effort at restructuring and consolidation" but don't indicate "a broader shift in direction." They also point out that, despite the cuts, ModCloth is still hiring.