Layoff Events

In May 2022, the Amazon aggregator startup Heroes, based in London and founded in 2020, quietly laid off 20% of its staff, affecting up to 24 employees out of a workforce of around 120. The company, which had raised over $300 million in funding, cited challenging market conditions, a potential global recession, shifting consumer spending, and difficulties in raising future capital as reasons for the cuts. This move was part of a broader industry shift from hypergrowth to profitability, as Heroes aimed to restructure and become a cash-flow positive business. The layoffs were sudden and company-wide, with the investment team being particularly hard hit.

Bright Money laid off 100 employees representing approximately 50% of its workforce on 2022-07-15.

Kiavi, a non-QM lender specializing in fix-and-flip and investor loans, laid off 39 employees, representing about 7% of its workforce of over 300. The layoffs, announced in mid-July, were part of cost-cutting measures to protect the company's financial health amid rising interest rates. According to internal communications, the decision was driven by challenges in the hard money lending space, where higher rates have reduced investor appetite for their assets, forcing Kiavi to halt plans for construction loans. The cuts affected multiple departments, including human resources, operations, and finance, with impacted employees receiving 12 weeks of severance. Despite recent expansion and a major securitization deal, the company cited the need to ensure sufficient cash flow for 2023 as a key reason for the restructuring.

Zego laid off 85 employees representing approximately 17% of its workforce on 2022-07-14.

Unstoppable Domains, a company in the Web3 and blockchain domain services industry, has conducted a layoff affecting an unspecified number of its employees. The exact scale of the reduction, including the total workforce and percentage impacted, is not detailed in the available report. The layoff appears to be part of broader adjustments within the cryptocurrency and tech sectors, reflecting ongoing market volatility and strategic realignments common among companies of its scale. The event was reported recently, though a precise date is not provided.

OpenSea, a major player in the NFT marketplace industry, conducted a significant layoff in late 2023, reducing its workforce by approximately 50%. This decision affected around 230 employees and was driven by a need to streamline operations and adapt to shifting market conditions within the broader crypto and digital assets sector. The company, which operates at a global scale, cited a strategic pivot towards a more agile and focused structure to enhance its product development and user experience during a period of industry-wide recalibration.

The Mom Project, a platform connecting companies with talented professionals, laid off 54 employees, representing 15% of its workforce. The company cited anticipated economic uncertainty and a potential recession as the primary reasons for the restructuring. This difficult decision was announced directly by the company, which emphasized its continued commitment to its mission despite the cutbacks. To support those affected, The Mom Project is providing severance packages, healthcare cost assistance, mental health service extensions, and help with job placement through its platform. The layoffs reflect broader business challenges, though the company insists the need for its services to support diverse talent remains strong.

Alto Pharmacy, a San Francisco-based healthtech company, laid off a number of employees in late June 2022 as part of a cost-cutting initiative. The layoffs occurred unexpectedly, with affected staff sharing farewells on LinkedIn. This workforce reduction coincided with the appointment of former Amazon executive Alicia Boler Davis as the new CEO, set to begin in September. While the exact number of employees impacted and the total workforce size were not disclosed in the article, the event highlights a period of transition and restructuring for the company within the competitive online pharmacy industry.

In July 2022, Arrival, a UK-based commercial electric vehicle manufacturer, announced a major restructuring plan to slash costs and reduce its global workforce by up to 30%. This significant layoff, impacting a substantial portion of its employees, was driven by a challenging economic environment marked by supply chain disruptions, the ongoing pandemic, geopolitical tensions, and rising inflation. The cost-cutting measures, which also included a targeted 30% reduction in overall spending, were designed to protect the business and ensure it could meet its production target of starting EV van manufacturing in the third quarter of 2022, utilizing its existing $500 million in cash reserves. This move placed Arrival among other EV companies, like Rivian and Tesla, that were implementing layoffs amid tightening economic conditions.

In July 2022, Fabric, a New York-based robotics and micro-fulfillment startup, laid off 40% of its workforce, affecting 120 employees out of a total of 300. This significant staff reduction was part of a major strategic shift, as the company moved from providing a full-service offering to becoming a platform-based model. The change was driven by customer demand for more direct control over operations, leading Fabric to pivot towards allowing clients to operate its automated warehouse systems on their own premises. Concurrently, the company appointed Avi (Jack) Jacoby as its new CEO, replacing founding CEO Elram Goren. Fabric, which had raised over $330 million and achieved a valuation exceeding $1 billion, operates in the logistics and e-commerce technology industry, focusing on automating last-mile fulfillment processes to help retailers compete with giants like Amazon.

Bryter, a German no-code automation platform provider, has laid off approximately 20 employees, which represents around 20% of its workforce. The layoffs occurred in early 2024 as part of a strategic restructuring aimed at extending the company's financial runway and focusing resources on core product development and key markets. Operating in the enterprise software and legal tech industry, Bryter, which had scaled to over 100 employees, cited challenging market conditions and a shift toward profitability as reasons for the downsizing.

Tonal, a connected fitness equipment maker backed by Serena Williams and Amazon's Alexa fund, is laying off 35% of its workforce, affecting about 262 employees from its current total of 750. The company, which experienced rapid growth during the pandemic, is now cutting costs to achieve profitability and prepare for a potential initial public offering. CEO Aly Orady cited the need to adapt to shifting consumer demand and economic pressures, including inflation and a potential recession, as reasons for the restructuring. This move aligns Tonal with industry trends, following similar actions by competitors like Peloton, as the fitness tech sector adjusts from hypergrowth to a more sustainable business model.

Nuro laid off 7 employees on 2022-07-13.

Involves, a Brazilian software company specializing in trade marketing management, laid off approximately 70 employees on July 13, 2022, representing about 18% of its workforce. This reduction leaves the company with just over 300 employees. CEO André Krummenauer explained that the layoffs were due to unsustainable capital costs associated with the company's previous leveraged growth strategy, prompting a shift toward capital efficiency. Despite recent revenue growth, the firm found its prior cash strategy unviable in the current financial market. The cuts primarily spared customer service and product teams to minimize client impact. Founded in 2009 and based in Florianópolis, Involves operates in the IT consulting and software industry, with branches in São Paulo, Mexico, and Colombia. This marks the company's second major layoff, following a 2020 reduction of over 80 employees.

CircleUp on 2022-07-13.

In March 2021, Papa, a healthcare company focused on companion care for seniors, laid off 15% of its workforce. The decision was made by CEO Andrew Parker, citing the need to adapt to the current environment and align with long-term goals. While the exact number of employees affected wasn't specified, the reduction reflects a strategic restructuring to sustain the company's mission of building human-centered care.

In June 2022, African fintech unicorn Wave, valued at $1.7 billion, laid off close to 15% of its nearly 2,000 employees, affecting approximately 300 staff. The cuts primarily impacted teams in newer expansion markets like Burkina Faso, Mali, and Uganda. The company cited the need to adapt to a tightening global funding environment and shifting investor sentiment, choosing to refocus resources on its core, profitable markets of Senegal and Ivory Coast, where it is a mobile money leader. This restructuring was part of a strategic shift to ensure long-term sustainability without relying on new external capital.

In July 2022, esports and apparel organization 100 Thieves conducted a significant round of layoffs, affecting more than a dozen employees across its social media and content teams. This represented a notable reduction within those departments, though the exact percentage relative to the company's total workforce wasn't specified. The cuts impacted both recent hires and long-tenured staff, including senior members and executives who had been with the company since its early days. The layoffs, which occurred on July 13th, appeared to be part of a broader industry trend, following similar moves by other major esports organizations. Valued at $460 million and ranked among the world's most valuable esports brands, 100 Thieves did not publicly state a specific reason for the restructuring at the time.

In July 2022, ChowNow, a Culver City-based startup providing online ordering systems for restaurants, laid off approximately 100 employees across teams like onboarding, operations, and sales. This reduction impacted a portion of its workforce as the company navigated significant economic shifts. Founder and CEO Chris Webb cited changed economic conditions and capital markets, stating the layoffs were a difficult but necessary adjustment from an ambitious 2022 budget to ensure the company's long-term sustainability. Operating in the competitive food tech and delivery industry, ChowNow, which had raised $64 million in venture capital, positioned itself as a restaurant-friendly alternative to major delivery platforms, serving over 22,000 restaurant customers at the time.

Microsoft, the global technology giant, initiated a small round of layoffs affecting less than 1% of its workforce, which totaled 181,000 employees as of mid-2021. This strategic realignment, announced in early July 2022 as the company entered its 2023 fiscal year, reflects broader economic pressures and a shift in hiring strategies across the tech industry. Faced with potential recession risks, rising interest rates, and a slowdown in growth-oriented investments, Microsoft and peers like Meta and Amazon have adopted more cautious approaches. The cuts, while minimal, impacted various groups and followed earlier guidance reductions due to unfavorable foreign exchange rates and a significant decline in PC shipments affecting the Windows business. This marks Microsoft's first notable layoff announcement since 2017, as it continues to evaluate and adjust its business operations while still planning to invest and grow headcount in certain areas ahead.

Gopuff laid off 1,500 employees representing approximately 10% of its workforce on 2022-07-12.

Mumbai-based D2C fresh vegetables delivery startup Fraazo has laid off over 150 full-time employees, a significant workforce reduction driven by a severe funding crunch. The layoffs, announced on July 9, affected multiple departments including operations, tech, and product. In a major operational pullback, the company has also shut down over 50 dark stores nationwide and completely exited the Delhi-NCR market. This restructuring, which includes potential further closures in Hyderabad and Bengaluru, comes less than a year after Fraazo raised $50 million, highlighting the intense pressure in the quick-commerce sector as the startup scales down to conserve capital.

Babylon laid off 100 employees on 2022-07-12.

Spring, a creator merchandise company formerly known as Teespring, conducted layoffs on Tuesday, July 13, 2022, affecting employees across growth, marketing, and other teams, including some high-level executives. The company, based in San Francisco and operating in the creator economy industry, confirmed the layoffs but did not disclose the exact number of employees impacted. CEO Chris Lamontagne stated the move was part of a plan to streamline the business and focus on building the best creator-facing product. Former employees described the layoffs as swift and expressed concerns about the company's direction, noting challenges beyond the economic downturn. Spring, which has raised $60 million, helps creators produce and sell merchandise through partnerships with platforms like YouTube, Twitch, and Instagram.

Event tech startup Hubilo, based in Bengaluru and San Francisco, laid off approximately 12% of its workforce, affecting around 45 employees out of a total of 374. The layoffs occurred in early July as part of a strategic shift to focus on virtual, live, and hybrid events. This move reflects the challenges faced by digital event platforms as physical events resume post-pandemic, impacting demand for purely virtual solutions. The company, backed by investors like Lightspeed Venture Partners, is providing severance packages and job assistance to affected staff.

In July 2022, Airlift, Pakistan's leading startup and most-funded company in the country, announced it was permanently shutting down, effectively laying off its entire workforce. The Lahore-based quick-commerce firm, which had raised $85 million at a $275 million valuation just months earlier, failed to secure a new financing round after investors were unable or unwilling to wire funds in a timely manner. Operating in eight Pakistani cities with a 30-minute delivery model for groceries and essentials, the capital-intensive business succumbed to a severe funding crunch, dealing a significant blow to Pakistan's nascent startup ecosystem.

Ignite, the company behind the Cosmos blockchain ecosystem, has laid off more than 50% of its workforce in July 2022, amid a severe crypto market downturn and internal restructuring. The cuts, which affected over 50 employees across various departments, followed the return of controversial ex-CEO Jae Kwon in May, who announced a reorganization splitting the company into Ignite and a new venture, New Tendermint. The crypto crash in June forced deeper reductions than initially planned, compounding the uncertainty around the firm's future as top executives, including CEO Peng Zhong, also departed. This places Ignite among other crypto firms like Coinbase and Crypto.com facing significant challenges during the sector's collapse.

SundaySky, an Israeli personalized video platform company, has laid off 24 employees, representing 13% of its workforce across Israel, the US, and Japan. This reduction coincides with the company selling a controlling stake to US private equity firm Clearhaven Partners for over $100 million, a significant shift from its earlier plans for a $280 million IPO on the Tel Aviv Stock Exchange. The layoffs, announced on July 11, 2022, are part of the restructuring following the acquisition, as the company, which reported over $40 million in annual recurring revenue in 2021, pivots its strategy under new ownership in the competitive video software industry.

Healthtech Alice laid off 63 employees as part of a team restructuring, specifically within its sales department. The layoffs, confirmed by the company, represent a strategic adjustment following a period of significant growth and funding. Affected sales personnel will receive an extra month's salary, extended health coverage for two months, and standard severance packages. Additionally, 20 other employees were reassigned to different roles within the company. Alice, a health management startup offering an alternative to traditional health plans, recently secured $127 million in a Series C funding round in December, bringing its total investment to over $174 million in two years. This move aligns with a broader trend of workforce reductions among major Brazilian startups.

Live events startup Hopin, valued at $7.75 billion, is laying off 242 employees, which represents 29% of its workforce of about 834 people. This marks the company's second round of job cuts in 2022, following a 12% reduction earlier in February. The UK-based virtual and hybrid events platform, which saw rapid growth during the pandemic, cited the challenging macroeconomic climate and the need to streamline its operations for sustainable, profitable growth. As the world shifts back to in-person events, Hopin faces reduced demand for its services, prompting this significant restructuring to focus on its core mission of connecting people through technology.

Forward representing approximately 5% of its workforce on 2022-07-11.

Apeel Sciences on 2022-07-11.

SoftBank-backed food-tech startup Nextbite, based in Los Angeles, is restructuring its operations and has laid off an undisclosed number of employees as of July 8, 2022. The company, which operates virtual restaurant brands and was formerly known as Ordermark, is adapting to shifting market conditions where venture capital firms are prioritizing profitability over rapid growth. CEO Alex Canter confirmed the organizational changes, which coincide with the appointment of restaurant industry veteran Denny Post as co-president to oversee marketing, operations, and culinary innovation. Nextbite's portfolio includes over a dozen delivery-only brands, such as Packed Bowls by Wiz Khalifa and George Lopez Tacos, and it had previously raised $120 million in a SoftBank-led funding round in 2020. The layoffs reflect broader challenges in the food-tech and startup sectors, with several other SoftBank-backed companies also restructuring amid market volatility.

In July 2022, advertising and marketing tech firm NextRoll laid off just under 3% of its workforce, affecting approximately 26 employees out of a total of 874. The cuts primarily impacted the sales and recruiting teams. This move reflects broader industry trends, as numerous adtech and martech companies are implementing layoffs in anticipation of an economic slowdown. NextRoll, which rebranded from AdRoll in 2019 to expand beyond retargeting into broader marketing technology, had previously conducted a significant 30% reduction in early 2020 due to the pandemic. The company serves small and midsize brands through its RollWorks B2B arm and AdRoll advertising services.

Calibrate Health Inc., a New York-based health-tech startup founded in 2019, laid off 156 employees on July 8, representing 24% of its 652-person workforce. The company, which raised $100 million last year and focuses on treating obesity through lifestyle and medication programs, implemented the restructuring to extend its financial runway and accelerate its path to profitability. The job cuts affected roles across the organization as the early industry leader aims to move closer to sustainable operations.

Butler Hospitality, a New York-based on-demand room service and amenities platform in the hospitality industry, laid off its entire workforce of roughly 1,000 employees in May 2022, effectively dissolving the company. This came shortly after the startup had raised $50 million, highlighting the severe challenges faced by on-demand delivery ventures. Founded in 2016, Butler operated as a ghost kitchen provider for hotels, but succumbed to economic pressures and market headwinds, leaving its staff without warning just days after assuring vendors that services would continue.

PuduTech laid off 1,500 employees on 2022-07-08.

In July 2022, Argo AI, an autonomous vehicle startup backed by Ford and Volkswagen, laid off approximately 150 employees, representing about 5% of its global workforce of over 2,000. The company cited a need for prudent adjustments to its business plan amid growing recession fears, acknowledging it had hired too quickly and overshot its targets. The layoffs affected various departments, including recruiting, digital media, communications, and operations. Despite the cuts, Argo AI continued hiring for engineering and technical roles while progressing with driverless testing in Miami and Austin as part of its commercialization efforts.

Digital marketing company Adwerx laid off 40 employees on July 7, 2022, as part of a strategic downsizing. The cuts, representing about 21% of its roughly 150-person workforce, resulted from scaling back new initiatives in non-core verticals to improve profitability amid macroeconomic uncertainty. The real estate and mortgage-focused firm stated it would retain its remaining staff and focus on its core markets, with no further layoffs planned. Affected employees, notified in one-on-one meetings, received severance packages.

In July 2022, Israeli insurtech unicorn Next Insurance laid off 150 employees, representing approximately 17% of its workforce. The majority of the cuts were in the U.S., with around 40 positions affected in Israel. The company, which provides digital insurance for small and medium-sized businesses and had about 200,000 customers, cited the need to adapt to a worsening macroeconomic environment and shift focus toward long-term profitability. Despite tripling its business in 2021 and projecting over $800 million in annual sales for 2022, Next Insurance made this difficult decision to streamline operations. The company had previously raised $250 million at a $4 billion valuation in March 2021.

Twitter on 2022-07-07.

Marketing startup Emotive, based in Sawtelle, Los Angeles, laid off 30 employees this week, representing 18% of its roughly 167-person workforce. The cuts, announced on July 7, 2022, are part of a strategic shift toward profitability amid a broader economic downturn and declining valuations in the software-as-a-service sector. CEO Brian Zatulove emphasized the move aims to secure the company's financial runway, though he noted it wasn't directly tied to e-commerce trends, as consumer spending remains stable. Emotive, which provides an AI-enhanced text message marketing platform for e-commerce, joins other local SMS marketing firms like Voyage in reducing staff recently.

Healthcare payments startup Cedar, a digital health unicorn valued at $3.2 billion, laid off 24% of its workforce on July 6, 2022, as part of a strategic adjustment to market conditions. CEO Florian Otto cited the need to adapt to current market realities and align with the company's evolving strategy following its acquisition of Ooda Health. The layoffs, which affected an unspecified number of employees from a total that had expanded with offices in New York, San Francisco, and Salt Lake City, aim to ensure long-term sustainability and profitability. This move places Cedar among several digital health startups conducting workforce reductions amid a broader market downturn, despite having raised significant venture capital, including a $200 million Series D round in early 2021.

Boston-based foodtech company Motif FoodWorks conducted a round of layoffs in July 2022 as part of a restructuring, citing the need to pivot focus toward key priorities with maximum return on investment amid challenging economic conditions. While the exact number of employees affected was not disclosed, the company indicated it would tighten its workforce in certain areas while continuing to invest in high-demand food-tech ingredients and finished products. Motif, which had raised $345 million since its 2019 spin-off from Ginkgo BioWorks, specializes in developing plant-based alternatives for meat and dairy, leveraging technologies like HEMAMI for flavor and APPETEX for texture. The layoffs reflect a strategic shift to streamline operations and concentrate resources on core innovations in the competitive alternative protein industry.

Remote, a global HR technology startup often associated with Portugal due to its Portuguese co-founder, is laying off about 100 employees, representing 9% of its 1,028-person workforce. This move, affecting staff including those in Portugal, marks a notable instance of the economic downturn impacting tech startups in the region. The layoffs reflect broader challenges within the technology sector as companies adjust to shifting market conditions.

Shopify, the Ottawa-based e-commerce platform, laid off 50 employees in July 2022, representing less than 1% of its workforce of over 10,000. The layoffs were part of the company's response to a significant decline in its stock price, which had fallen more than 70% from its late 2021 peak, impacting employee compensation packages. This move coincided with Shopify delaying a planned compensation overhaul that aimed to give employees more flexibility in choosing between cash and stock-based pay. The tech industry was experiencing a broader sell-off at the time, prompting the company to adjust its strategies and salary frameworks, which also led to delays in job offers and new hires.

Israeli business monitoring startup Anodot is laying off approximately 15 employees, representing 20% of its current 80-person workforce, in its second round of layoffs within a year. This follows a previous round in July 2022, when 35 employees, about 27% of the staff at that time, were let go. Founded in 2014 and having raised $62.5 million, the company, which uses AI to monitor business metrics, cites the need to achieve financial independence and profitability amid challenging global market conditions as the reason for the cuts. The layoffs were announced in May 2023.

Data analytics startup SQream laid off 30 employees in July 2022, representing over 15% of its then 170-person workforce, with most cuts occurring in Israel. The company, founded in 2010, stated the layoffs were necessary to achieve a balanced bottom line and adapt to a challenging financial climate, reducing reliance on external funding. Facing competition from giants like Snowflake, Amazon, and Oracle, SQream aimed to focus on revenue generation from new and existing clients despite having a significant order pipeline. This move followed its acquisition of Panoply for an estimated $60-70 million in late 2021.

Bullish laid off 30 employees representing approximately 8% of its workforce on 2022-07-05.

Israeli AI-powered visual search startup Syte laid off 13 employees in early July 2022, reducing its workforce from approximately 160 people. This cut, affecting around 8% of staff, was part of a broader effort to extend the company's financial runway by two years. The move coincided with an additional cash infusion from existing investors, aimed at sustaining operations until the market recovers from its downturn.