Fashion marketplace Poshmark has confirmed that it has laid off an unspecified number of employees in response to the economic slowdown.

The California-headquartered company told TechCrunch that less than 2% of its workforce had been affected, primarily employees based in the U.S. Those impacted had been notified and offered financial support, continued full healthcare coverage and outplacement services, it added.

“We 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 Poshmark spokesperson told the AIM Group. “We are incredibly grateful for the contributions of the talented people in the roles that were impacted.”

Poshmark has a workforce of more than 800.

The redundancies come less than two months after Korea-based Naver Corp. completed its acquisition of the fashion marketplace.

Poshmark, founded by Manish Chandra, the company’s CEO, aims to combine “the human connection of physical shopping with the scale, ease and selection benefits of e-commerce.” The site encourages users to connect through social network-style features.

It is active the U.S., Canada, Australia and India. With more than 80 million registered users to date, Poshmark competes against such sites as The RealReal, ThredUp, Grailed and Depop. It went public in January 2021.

This brief has been updated to include a statement received from Poshmark.

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