Layoff Events

In August 2022, Ghana-based social technology company Viamo conducted a significant layoff, described by a former employee as affecting "a lot" of staff, particularly within its global design and implementation teams in Asia. The company, which provides mobile communication services in local languages for NGOs, governments, and businesses, cited redundancy and internal restructuring as reasons, noting that fewer people could handle the existing workload. This move appears linked to financial strain, with the company reportedly "in the red" due to low revenue and a decline in venture funding. The layoffs may also reflect a post-pandemic adjustment, as Viamo had expanded rapidly during COVID-19 to run global misinformation programs with substantial funding, which has since diminished. This marked the second round of layoffs for the company.

Nate laid off 30 employees on 2022-08-30.

Electric, an IT and security management platform for small to medium businesses, laid off approximately 15% of its workforce in early 2023, affecting around 30 employees. The company, which had about 200 employees total, cited a need to streamline operations and extend its financial runway amid broader economic uncertainties in the tech industry. This restructuring reflects the challenges faced by many SaaS and IT service providers in adjusting to shifting market demands and prioritizing sustainable growth.

Bristol-based cybersecurity startup Immersive Labs has laid off 38 employees, representing 10% of its global workforce, as part of a restructuring effort to accelerate its path to cashflow breakeven. The company, founded in 2017, cited the need to adapt to the current economic downturn and focus on high-growth opportunities in proven markets. Despite the layoffs, Immersive Labs continues to hire for 32 open roles, primarily in the U.S., emphasizing strategic growth in key segments. The firm, which has raised $123 million in funding and serves clients like HSBC and Citi, aims to position itself for long-term success amid broader industry challenges affecting the UK tech sector.

African genomics startup 54gene laid off 95 employees in August 2022, representing approximately 30% of its workforce of over 290. The layoffs primarily resulted from a significant decline in COVID-19 testing demand, a business line the company had expanded into during the pandemic. This downturn led to redundancies across multiple functions, including labs, sales, data entry, and sample collection. Founded in 2019, the startup had raised $45 million to advance precision medicine by building a biobank of African genetic data, but the contraction of its testing operations necessitated this workforce reduction.

Skillz, a mobile esports platform company, conducted a round of layoffs in early 2024, affecting approximately 10% of its workforce. This reduction, which impacted dozens of employees, was part of a broader restructuring effort aimed at extending the company's financial runway and achieving profitability. The layoffs follow a period of strategic challenges for Skillz as it navigates a competitive mobile gaming market and works to streamline its operations.

Social commerce platform Meesho laid off approximately 300 employees in late August 2022 as it wound down its grocery business, 'Superstore,' in over 90% of its operational cities. This decision was driven by low revenue and high cash burn in the grocery segment. The layoffs followed earlier workforce reductions of about 150 in April 2022 and 200 in April 2020, as the company, which serves millions of users and small businesses, refocused on its core marketplace. The affected employees reportedly received a severance package of two months' salary.

Fungible, a VC-funded composable DPU startup, has laid off a significant number of employees as it refocuses on the mature storage market amid broader economic challenges. The company, which has raised $311 million, is navigating a competitive landscape dominated by established players while burning cash. This move, reported in late August 2022, reflects industry-wide pressures including inflation, supply chain issues, and recession fears affecting tech startups. Fungible's strategy centers on its DPU hardware and composability software, aiming to streamline server-storage interactions, but market saturation poses a challenge for its growth.

Israeli autotech company Otonomo is laying off dozens of employees, impacting its workforce of nearly 200 people. This significant reduction follows a dramatic decline in the company's market value, which has plummeted from $1.26 billion at its SPAC-led IPO in 2021 to just $62 million by August 2022. The layoffs are part of a restructuring effort amid poor business results, failure to meet revenue forecasts, and macroeconomic challenges. The company, which operates a data marketplace for connected vehicles, also faces potential delisting from Nasdaq after its stock traded below $1 for over 30 days.

Zymergen, a biotechnology company focused on bio-manufacturing, laid off approximately 120 employees, representing about 25% of its workforce, in a restructuring effort announced in August 2022. The move was part of a strategic shift to prioritize near-term revenue opportunities and reduce operational costs, following challenges in commercializing its initial products. This reduction impacted teams across the organization as the company aimed to extend its financial runway and refocus its research and development efforts.

Fintech startup Argyle laid off 20 employees in August 2022, representing 6.5% of its team, as part of a strategic shift to focus on enterprise clients rather than small and medium-sized businesses. The company, which provides employment record access, stated the move was necessary to align its workforce with the specific skill sets required for serving larger organizations. Despite the layoffs, Argyle planned to double its headcount by year-end, hiring for over 30 open positions. This restructuring occurred just five months after the company secured a $55 million Series B funding round, highlighting the competitive pressures in the fintech sector, where even well-funded startups must adapt quickly to market demands and evolving competitor landscapes like Plaid's entry into income verification.

Okta, a security technology company, laid off its entire US sourcing team in August 2022, affecting 24 employees, which represented about 0.4% of its global workforce. This move was part of a broader trend among tech companies, including Twitter and Apple, to reduce HR and talent acquisition roles amid economic uncertainty and hiring slowdowns. While Okta stated it continues to invest in high-growth areas and plans to increase overall headcount, the decision reflects a strategic shift as companies adjust to a looming recession by scaling back recruitment-focused positions.

ShipBob, a Bain Capital Ventures-backed e-commerce fulfillment startup, laid off 7% of its workforce on August 25, 2022, as the post-pandemic online shopping boom cools. The company, which operates fulfillment warehouses in the US, UK, and Europe and was valued at over $1 billion, cited a greater-than-expected downturn in e-commerce demand. Affected roles included recruiters, software engineers, and much of the quality assurance team. This move reflects broader challenges in the logistics and fulfillment sector, where companies like Stord and FarEye have also cut staff. Laid-off employees received severance packages, including 10 weeks of pay and COBRA coverage, as ShipBob adjusts to a shrinking market after rapid expansion.

FreshDirect laid off 40 employees on 2022-08-25.

Loja Integrada, a e-commerce platform owned by VTEX, laid off approximately 25 employees in early August 2022, representing about 10% of its workforce of nearly 250. The cuts affected multiple departments, including marketing, content, product, software, and business intelligence. The company stated the layoffs were part of a strategic redirection to improve operational efficiency, involving brand repositioning, new product launches, and outsourcing some activities. While the official reason cited efficiency gains, a former employee suggested the move corrected prior disorganized growth and role overlaps. Despite the layoffs, the company indicated it continues to hire in other areas and provided extended health benefits to those affected.

Pix, a company in the technology industry, has recently conducted layoffs, though the specific number of employees affected, total workforce size, and exact percentage were not disclosed in the available information. The layoffs occurred in early 2024, with the company citing strategic restructuring and a focus on core business priorities as the primary reasons. As a mid-sized tech firm, Pix is adjusting its operations to align with market demands and optimize resources for future growth.

Israeli-founded real estate and fintech platform Reali is shutting down operations as of September 9, 2022, resulting in layoffs for its entire workforce of approximately 140 employees. This represents 100% of its staff. The company, which had raised a total of $140 million in funding, including a $100 million Series B round just a year prior, is ceasing operations amid broader tech sector challenges. Founded in 2015, Reali offered a platform to streamline home buying and selling transactions.

Loop laid off 15 employees representing approximately 20% of its workforce on 2022-08-24.

Australian online retailer Kogan reported its first annual loss since its 2016 stock market listing, posting a $35.5 million net loss for the 2022 financial year. In response to a major slowdown in e-commerce spending as pandemic lockdowns ended, the company announced it would begin reducing its employee headcount. Founder and CEO Ruslan Kogan admitted the company had miscalculated post-lockdown consumer demand, having significantly expanded inventory and logistics in anticipation of sustained growth that did not materialize. The announcement was made in late August 2022, as the broader e-commerce industry faced a cooling period after the initial pandemic boom.

DataRobot representing approximately 26% of its workforce on 2022-08-23.

Packable, the parent company of top Amazon seller Pharmapacks, is ceasing operations and laying off all its employees after failing to secure new financing. The company announced it is laying off 138 employees initially, about 20% of its staff, with the remaining 372 employees to be terminated as the business winds down. This decision follows a collapsed plan to go public via a SPAC merger last year, which valued the company at $1.55 billion. Once the largest seller on Amazon's U.S. marketplace, Packable operated in the e-commerce and health/beauty retail industry, relying heavily on Amazon for sales. The company's closure highlights the challenges faced by online retailers in a shifting economic and financial environment.

In August 2022, Toronto-based investor-relations software provider Q4 laid off approximately 48 employees, representing 8% of its workforce, as part of broader cost-cutting measures amid a tech sector downturn. The company, which went public in 2021, cited shifting market conditions, including persistent inflation and rising interest rates, which slowed demand from new clients like companies completing IPOs. CEO Darrell Heaps emphasized the need to accelerate profitability after a period of heavy investment, with layoffs affecting sales, marketing, and research-and-development teams. This move reflects the industry-wide shift from prioritizing growth to seeking sustainable profitability in a volatile economic environment.

German micromobility giant Tier Mobility laid off 180 employees, representing 16% of its staff, on August 23, 2022. The company, previously valued at $2 billion, cited the poor economic and funding climate as the primary reason, stating it needed to reduce projects and business lines to accelerate its path to profitability. The layoffs, concentrated in Berlin, affected various teams, with marketing, market development, and technology being hit hardest. This move followed a period of aggressive expansion, including acquisitions like Spin and Nextbike, and reflects a broader trend of cutbacks in the late-stage tech and transportation sectors as companies adjust to challenging market conditions.

ShopX, a Bengaluru-based e-commerce enabler backed by Nandan Nilekani and Fung Investment, has ceased operations and filed for insolvency. The company, which had raised over $54 million and was valued at over $100 million, struggled after pivoting from its core model in mid-2021. This shift, along with the low-margin nature of the industry, made operations unviable. In June 2021, ShopX laid off over 50% of its employees as part of its restructuring. Unable to generate sufficient cash flow or secure new funding since April 2020, the company could not meet its financial obligations, leading to its shutdown in August 2022.

Mr. Yum, an Australian hospitality tech company, announced a workforce reduction of approximately 17% of its team. This difficult decision was made to align the company's structure and strategy with a more focused approach to support customers and product vision as capital markets recover. The layoffs were communicated with empathy, and the company plans to share an opted-in list of the impacted talented individuals to aid their job search. The move reflects broader challenges in the funding environment for tech startups.

Israeli offensive cyber company NSO is laying off 100 employees, representing about 15% of its 700-person workforce, as part of a reorganization announced in August 2022. Co-founder and CEO Shalev Hulio is stepping down to focus on mergers and the potential sale of the company, with COO Yaron Shohat taking over as CEO. The layoffs and leadership change come as NSO faces intense scrutiny and legal challenges from major tech firms like Apple, Microsoft, and Meta, as well as U.S. government sanctions, largely related to its Pegasus hacking tool. The company aims to restructure amid these ongoing pressures.

Israeli cybersecurity company Tufin laid off 55 employees, representing 10% of its workforce, in August 2022. The layoffs, which included 25 staff in Israel, were part of a streamlining effort aimed at accelerating the company's return to profitability. This restructuring occurred following Tufin's agreement to be acquired by U.S. investment firm Turn/River Capital for $570 million. The company, which provides cybersecurity policy management and automation solutions, reported growing revenue but continued losses prior to the cuts, indicating a strategic shift to improve financial performance under new ownership.

Amperity laid off 13 employees representing approximately 3% of its workforce on 2022-08-20.

Wayfair, the online home furnishings retailer, announced layoffs of 870 employees, representing about 5% of its global workforce of 18,000. The cuts, which include 400 positions in its Boston headquarters, were communicated by CEO Niraj Shah on Friday, January 20, 2023, as the company responded to a quarterly loss and declining sales attributed to shifting consumer spending and high inflation. This move, impacting 10% of its corporate team, triggered a significant 20% drop in Wayfair's stock. The layoffs reflect broader economic challenges and a post-pandemic slowdown in e-commerce demand that surged during the early COVID-19 years.

In August 2022, fintech giant Stripe laid off between 45 and 55 employees from TaxJar, a tax compliance startup it acquired in April 2021. The layoffs, conducted over the prior month, were part of Stripe's decision to wind down TaxJar-focused go-to-market efforts. This workforce reduction impacted a significant portion of the approximately 200 employees who joined Stripe from TaxJar, representing a cut of over 20% from that acquired team. The move occurred amid a broader tech downturn and followed a 28% internal valuation cut for Stripe in July, though the company, valued at $95 billion by investors, remains a major player in the financial technology industry.

Singaporean cryptocurrency lender Hodlnaut laid off 40 employees, representing 80% of its staff, in a drastic cost-cutting move amid severe financial and legal troubles. The firm, which froze user withdrawals in early August 2022, cited liquidity stabilization needs and losses from the terraUSD stablecoin collapse in May. Concurrently, it is engaged in police proceedings with Singaporean authorities and is seeking court protection from creditors, highlighting the broader crisis affecting crypto lenders like Celsius and Voyager during the market downturn.

New Relic laid off 110 employees representing approximately 5% of its workforce on 2022-08-18.

In August, digital-health startup Wheel, valued at over $1 billion, laid off 35 employees, representing 17% of its workforce. The Austin-based company, which provides virtual-care infrastructure and clinician networks, made the cuts on August 18 as part of a strategic shift to prioritize building its own integrated platform over a marketplace of solutions. CEO Michelle Davey cited the need to focus on quality and adapt to uncertain economic conditions, noting that the move aligns with long-term goals to enhance the clinician and patient experience. This reflects a broader trend of belt-tightening across the digital health sector amid market volatility.

Vendasta, a Saskatoon-based technology company, laid off an unspecified number of employees in August 2022, shortly after receiving a "Best Workplace" recognition. The layoffs were attributed to strategic restructuring and economic pressures, reflecting a challenging period for the tech industry. The company, which provides a platform for selling digital solutions to local businesses, did not disclose the exact percentage of its workforce affected. This move highlights the volatile nature of the tech sector, where even celebrated workplaces can face difficult adjustments in response to market conditions.

Petal, a New York-based fintech startup, has not announced any layoffs. The article from May 2023 details the company raising $35 million in funding and spinning off its data unit. Petal, which offers Visa credit cards aimed at consumers with thin or no credit history, reported growing demand, adding 100,000 cardholders in the previous year and projecting profitability for 2024. The company, with a model similar to TomoCredit, uses cash flow underwriting to assess creditworthiness. Despite a challenging economic environment, Petal claimed improving delinquency rates and significant revenue growth, reaching $80 million in annualized revenue by the end of 2022.

In August 2022, Brazilian mobile virtual network operator (MVNO) Fluke laid off over 80% of its workforce, reducing its team from 101 employees to just 18, as part of a drastic survival move. The startup, which provides flexible cell phone plans, faced severe cash flow pressures and high operational costs amid a broader market correction. This massive downsizing, which occurred in successive waves through mid-August, contradicted earlier growth plans and statements from CEO Marcos Oliveira about avoiding layoffs. Concurrently, Fluke was in the process of being acquired by a larger telecommunications player. The remaining skeleton crew primarily handles customer service to keep operations running, while the founders actively helped place many of the affected employees in new roles at other companies.

In August 2022, cybersecurity company Malwarebytes laid off 125 employees, representing approximately 14% of its global workforce. The layoffs were part of a strategic reorganization aimed at refocusing the business on small to mid-sized business (SMB) and midmarket customer segments. According to founder Marcin Kleczynski, this shift involved revisiting the enterprise sales function and recalibrating the sales organization to prioritize channel partnerships and managed service providers. The company, which had raised $80 million in funding and was valued at $625 million, communicated the layoffs via individual Zoom meetings, with most cuts occurring in the San Francisco area.

Tempo Automation laid off 54 employees on 2022-08-17.

In August 2022, Brazilian fintech Warren conducted a significant layoff, dismissing nearly 50 employees, which represents over 7% of its workforce of more than 700. The cuts primarily targeted the technology sector, including front-end, UX, and data engineering roles, but also extended to administrative, purchasing, marketing, and education departments, with senior leaders like the CMO and education director being affected. The company cited a restructuring and strategic shift as reasons, despite having recently secured a R$300 million Series C funding round. This move aligns with a broader trend of workforce reductions within the fintech industry during that period.

Genesis laid off 52 employees representing approximately 20% of its workforce on 2022-08-17.

Australian cryptocurrency exchange Swyftx laid off 74 employees, representing 21% of its workforce, in response to a challenging economic environment marked by high inflation, rising interest rates, and market volatility. The company's co-CEOs announced the difficult decision, emphasizing it was a last resort to align costs with an extended period of uncertainty. The layoffs occurred in 2022, impacting the fintech industry, and the company, which had grown significantly, is providing support including career counseling and accelerated equity vesting to affected staff.

AlayaCare, a Montréal-based healthtech startup, has laid off 80 employees, representing nearly 14% of its workforce. The cuts were announced by CEO Adrian Schauer in an email to staff, citing the need to become cash-flow breakeven by the end of 2023 amid challenging macroeconomic conditions. The company has faced slower sales cycles and lower-than-expected revenue growth, prompting a shift from its previous aggressive investment and acquisition strategy. As part of broader cost-cutting measures, AlayaCare has also scaled back merger and acquisition plans and let go of office leases in Victoria and Queens. The layoffs, described as a difficult decision, impact teams across geographies, particularly on the acquired products side. Founded in 2014, AlayaCare provides an AI-powered platform for home healthcare providers and recently raised $225 million CAD in Series D funding last year.

Updater, a leading moving technology company, implemented a team restructuring on August 16, 2022, resulting in layoffs. While the exact number of employees affected was not disclosed, the move was part of a strategic shift to narrow the company's focus to high-value partnerships and new opportunities, minimize costs, and implement a shared services model across its portfolio. Some employees were transitioned to an aggressive hiring initiative at its subsidiary, MoveHQ. The layoffs were described as targeted, based on structural adjustments to reduce duplication and meet future business goals, with the company offering severance and job placement support to those departing.

Israeli data center technology startup Pliops laid off 12 employees in August 2022 as part of a strategic refocusing of its business and technological activities on the U.S. market. This reduction, which affected the sales and marketing departments, followed a successful $100 million Series D funding round. The layoffs represented approximately 10% of the company's workforce, which stood at 115 people after the cuts. CEO Uri Beitler stated the move was to streamline operations and concentrate resources on the development and release of the company's next-generation product slated for 2023, aiming to drive future growth and achieve profitability.

Edmodo, a popular K-12 education technology platform, is permanently shutting down as of late August 2022, effectively laying off its entire workforce. The company, which had tens of millions of users and was acquired by China-based NetDragon Websoft in 2018, cited an inability to maintain a viable service level. Founded in 2008, Edmodo was a global tool recommended by UNESCO during the pandemic, but it struggled as a standalone free service. The closure raises significant data privacy concerns, though the company has committed to destroying user data. This marks the end of a once-prominent competitor to platforms like Google Classroom.

Sema4 laid off 250 employees representing approximately 13% of its workforce on 2022-08-15.

Blend, a California-based mortgage technology company, is laying off approximately 420 employees, representing 25% of its workforce, in two rounds during 2022 (200 in April and 220 in August). This drastic cost-cutting measure comes in response to a severe market downturn and a massive $478.4 million loss in Q2 2022, partly due to a $392 million impairment charge related to its Title365 acquisition. Facing historically low mortgage origination volumes expected to persist through 2025, the company is restructuring to focus on higher-return products and achieve significant annual savings. The layoffs are part of a broader strategy to streamline operations, including vendor contract reviews and offshoring, as the mortgage industry navigates a challenging economic environment.

ContraFect, a biotechnology company focused on infectious diseases, has implemented a workforce reduction following a significant setback in its clinical trial. The layoffs, announced on August 15, 2022, come as the company restructures its operations after its lead candidate, exebacase, failed to meet the primary endpoint in a Phase 3 study for Staphylococcus aureus bacteremia. While the exact number of employees affected was not disclosed, the cuts represent a strategic downsizing to preserve capital and extend the company's financial runway. This move is a common response in the volatile biotech industry when key clinical trials do not yield the desired results, forcing companies to re-evaluate their pipelines and operational scale.

ThredUp, an online resale apparel retailer, laid off 15% of its corporate workforce in August 2022 as part of cost-cutting measures amid widening quarterly losses. While the exact number of affected employees was not disclosed, the move came as the company anticipated a challenging economic environment with consumers reducing spending, particularly among discount-oriented shoppers. Despite reporting a 27% revenue increase to $76.4 million in Q2 2022 and growth in active buyers, ThredUp faced a contracting gross margin and a net loss that nearly doubled to $28.4 million. The layoffs were accompanied by the closure of a processing center, reflecting efforts to streamline operations while continuing to expand its resale-as-a-service platform for partner brands.

Israeli startup Anywell, a Workspace-as-a-Service platform for hybrid work, has laid off an additional 11 employees, bringing its total workforce reduction to about 50% since March 2022. This follows a company restructuring initiated after it raised a $10 million Series A funding round. The layoffs, which include six employees in Israel, are part of a strategic shift to focus more on software-based solutions, responding to market conditions and client demands for comprehensive hybrid management tools. The company, which operates in Israel and New York and partners with over 200 local venues, provided support packages and job assistance to affected staff.