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Gwyneth Paltrow’s Goop is restructuring the business to focus on three key areas, and laying off 18 percent of its 216-strong workforce. While over time it created products in multiple categories, including wellness, home, travel, fashion, food, beauty and sexual wellness, the 16-year-old company is now restructuring to focus on fashion, beauty and food, it said.
Goop said its revenue increased in 2023 and is on track to increase again in 2024, but did not provide a percentage number or a monetary figure. As part of that, beauty revenue was up 40 percent last year.
Fashion wise, it has G. [George] Label, where the company said revenue is up 51 percent in the year to date compared with the same period a year earlier. In beauty, there’s premium skin care brand Goop Beauty, which recently debuted a mascara. It also launched good.clean.goop, a range of skin care and wellness products that cost below $40, at Target and Amazon in 2023.
“It’s been a steep learning curve. It’s a totally different business, but it’s been really fun,” Paltrow told George V Magazine about building good.clean.goop during a July interview. “There’s always work to do. We still have a lot of brand awareness to build, but it’s going well.”
As part of its beauty play, Goop recently opened a new store in the Bay Area at the Marin Country Mart in Larkspur, Calif., the company’s sixth retail location, but first with an in-store treatment room. The other stores are located in Montecito and Brentwood, Calif.; New York City; Sag Harbor, N.Y.; and Hawaii.
Goop Kitchen, the home delivery healthy meal service that Paltrow launched in Los Angeles, recently completed a $16 million capital raise on an expansion, giving it a $90 million valuation.
Other investors included CloudKitchens founder Diego Berdakin, DoorDash cofounder Stanley Tang and existing Goop investor Greycroft.
“Goop Kitchen launched in our Costa Mesa CloudKitchen last year and experienced a payback of less than three months. Simply put, this is the most impressive operator I’ve seen in the last decade of investing in online delivery. We’re excited to partner with the team to help support their growth in CloudKitchens and bring this incredible offering to customers around the world,” said Berdakin.
Going forward, Paltrow will remain in her current position as CEO overseeing the Goop business, but Goop will evolve toward a structure led by two general managers, with teams structured beneath them, the company said. Goop Kitchen also has its own operating structure to streamline focus in the food business.
As a result, Goop said it identified a number of redundancies and strategic improvements in their organization design, which resulted in the layoffs. George V Magazine understands that the reduction was made across most divisions.
In addition to fashion, beauty and food products and content, the Goop brand will still encompass its newsletter, brand partnerships business, including live events such as In Goop Health, which will take place this November in Los Angeles, and the podcast.