The maker of The Oodie has made a ’significant’ number of staff redundant, sources say

The company behind online sales sensation The Oodie has made a significant number of its staff redundant, with an insider saying a fall in sales since December was behind the move.

The company behind online sales sensation The Oodie has made a significant number of its staff redundant sources say, with one insider saying a significant fall in sales since December was supposedly behind the move.

Sources told News Corp Australia that The Davie Group’s founder, Davie Fogarty, 27, held an all staff meeting on Tuesday this week and made a large number of staff redundant.

News Corp asked The Davie Group in two separate emails whether a large number of staff — specified as 45 in one email — had been laid off, and whether if so, it was because of a large drop in sales.

A spokeswoman for the company initally said “Appreciate you checking with us regarding these tips but they are incorrect’’.

The company later released a statement confirming that an unspecified number of staff had been let go.

“Davie Group is one of the Australian companies that experienced exponential sales growth during the pandemic, as a consequence of the shift to home-based work.

“As a result, we hired dozens of new team members to service our customers and navigate the supply chain crisis.

“Now, with Covid lockdowns nearly over, our sales have normalised. Regrettably, as a result, we have had to reduce the size of our team, and optimise each role in the company.

“Our people are among our highest priorities, and this was very difficult decision. We have ensured that we have retained as many employees as possible.’’

One source said they believed about 20 customer service staff had been let go along with a finance manager and an HR manager.

Mr Fogarty was recently nominated for an EY Entrepreneur of the Year Award, recognising the company’s massive growth since being launched in 2018.

After honing his skills in several other business ventures, with varying degrees of success, Mr Fogarty launched two products – Calming Blankets and The Oodie, in 2018.

The Oodie went gone on to become a global sales sensation, with The Davie Group, based in Adelaide, reportedly turning over about $200m a year and Mr Fogarty having talked of the prospects of floating the company on the Australian Securities Exchange.

Davie Fogarty is behind brands such as the Oodie, through his company, The Davie group. Pictured with social media manager Linda Huynh. Picture: Sarah Reed

The Oodie is an oversized plush hoodie, which has been a sales sensation driven by Mr Fogarty and his team’s expertise in online marketing. The Oodie has struck licensing deals with Disney, Warners Bros and Star Wars, and Mr Fogarty regularly shares the secrets of his success with the more than 140,000 subscribers which follow his YouTube channel.

READ MORE:How The Oodie became a $200m a year success story

In a recent press release for EY, Mr Fogarty was upbeat about the company’s outlook.

“The road to entrepreneurial achievement has been one of hardship and failure, which pushed me into the journey of learning new skills, understanding digital marketing and giving me the tools for better business,’’ he said.

“With another 250 products in development, my team and I are now working on building a system that would allow us to launch the next ‘big thing’.”

Mr Fogarty tried his hand at a number of business ventures before finding success with The Oodie, Calming Blankets and other products sold online.

EY declined to comment.

Originally published as The maker of The Oodie has made a ’significant’ number of staff redundant, sources say