In a recent turn of events, Farfetch, the online luxury fashion marketplace, is experiencing a significant shift in leadership following its acquisition by South Korea’s Coupang. The founder and CEO, José Neves, along with other key members of the leadership team, is reported to be stepping down.

While an official announcement is pending, insiders attribute this development to an internal memo, emerging less than a month after Coupang assumed control at a fraction of Farfetch’s former stock exchange valuation.

In a recent turn of events, Farfetch, the online luxury fashion marketplace, is experiencing a significant shift in leadership following its acquisition by South Korea’s Coupang. The founder and CEO, José Neves, along with other key members of the leadership team, is reported to be stepping down. While an official announcement is pending, insiders attribute this development to an internal memo, emerging less than a month after Coupang assumed control at a fraction of Farfetch’s former stock exchange valuation.

Reports indicate that Elizabeth Von Der Goltz, Chief Fashion and Merchandising Officer at Farfetch/Browns CEO, and Kelly Kowal, Head of Farfetch Platform Solutions, are also part of the departing leadership. Both WWD and Business of Fashion have covered this news, citing an internal memo as their source.

However, Neves is not severing ties with the business entirely. According to WWD, he will retain a consultancy role within the company. In the interim, Coupang founder Bom Kim and the remaining Farfetch executive team are expected to oversee the operations.

The restructuring doesn’t stop at leadership changes. Speculations suggest that more job cuts might be on the horizon as Coupang aims to streamline Farfetch and refocus on its core strength as a marketplace connecting luxury boutiques with high-end fashion consumers. José Neves founded Farfetch in 2008, riding the wave of the booming online luxury sales market. The company thrived during the pandemic, capitalizing on global store closures, similar to other e-tailers

However, the post-pandemic resurgence of physical stores caught many online businesses off guard, Farfetch included. Critics argue that the company’s expansion into non-core areas, such as acquiring New Guards Group and dabbling in beauty (later abandoned), stretched its resources thin. Shareholders grew impatient about the timeline for sustainable profitability, and issues escalated in the second half of the previous year.

Even after receiving competition clearance in October for its ambitious takeover of Richemont’s Yoox Net-A-Porter, and despite exiting the beauty sector in August, Farfetch faced financial challenges. In December, urgent talks were reported to secure funding, leading to the revelation of the Coupang deal in the same month, which was finalized last month.

Neves’ departure amid Farfetch’s challenges echoes a familiar narrative in the business world, where founders witness substantial growth, encounter major setbacks, and eventually step aside during a change in leadership orchestrated by new majority owners. This latest development raises questions about the future trajectory of Farfetch under Coupang’s management and how the company will navigate the ever-evolving landscape of the luxury fashion marketplace.