Casper CFO To Leave Three Months After IPO Amid Corporate Staff Cuts

Casper Sleep Inc. CSPR announced Tuesday that its chief financial operator would be leaving, it was closing its European operations, and it would be laying off more than 20% of its corporate workforce.

What Happened

Casper Sleep, the purveyor of specialized sleep products such as mattresses, pillows, bedding, and furniture, issued a statement on the measures it was taking in response to the COVID-19 pandemic.

In addition to the company’s retail employee furlough announced March 30, the company will terminate its European operations by the end of 2020. The restructuring involves eliminating 78 positions or 21% of the corporate workforce, which will result in $10 million in annualized savings.

Philip Krim, CEO of Casper Sleep, said in a statement, “We are making a series of difficult decisions to preserve the long-term resiliency and flexibility of the Company. These actions enable us to focus on the strength of our North American business during this uncertain time.”

Greg Macfarlane, the company’s CFO who also acts as its chief operating officer, will depart on May 15, 2020. He will be joining a senior executive role elsewhere.

Stuart Brown will act as the company’s interim CFO effective May 15. He had previously served as the executive vice president and CFO of Iron Mountain Inc. IRM. Emile Ariel, president of Casper Sleep, will act as COO on an interim basis.

Why It Matters

The exit of Macfarlane comes nearly three months after the company’s initial public offering. Casper Sleep said that his exit is not related to any financial performance, policy or control issues.

Casper Sleep announced that its Q1 2020 results are expected to be in line with guidance. According to the company, it remains committed to achieving positive EBITDA profitability by mid-year 2021, and the savings from restructuring will help achieve that goal.

According to Casper Sleep, it has $116 million in cash as of end Q1 2020, which it believes will help in weathering the pandemic crisis along with “significant strength” in its e-commerce business in Q2 to date. 

Price Action

Casper Sleep shares traded 0.11% lower at $5.80 in the after-hours session on Tuesday. The shares had closed the regular session 3.68% higher at $5.91.