Layoff Events

In July 2022, Israeli social trading and investment platform eToro laid off 100 employees, representing approximately 6% of its total workforce, with half of the cuts occurring in Israel. The layoffs coincided with the company's official termination of its planned SPAC merger, a deal initially valued at $10.3 billion that had stalled due to regulatory hurdles and a downturn in tech valuations. Citing challenging market conditions, eToro pivoted to seek private funding, entering advanced negotiations for a round of $800 million to $1 billion at a reduced $5 billion valuation. The fintech company's growth had been closely tied to cryptocurrencies, a sector facing increased regulatory scrutiny at the time.

Brazilian proptech unicorn Loft conducted its second round of layoffs in July 2022, cutting 384 employees, which represents 12% of its then 3,200-strong workforce. This follows an earlier dismissal of 159 staff in April, attributed to the integration of CrediHome. The company cited a strategic shift towards increased efficiency after four years of aggressive growth, both organic and through acquisitions. This move reflects a broader "winter" for startups, particularly high-growth, cash-burning unicorns, as rising interest rates and market volatility force cost-cutting measures and down-rounds. Loft offered affected employees extended health benefits and outplacement support.

Thimble laid off 20 employees representing approximately 33% of its workforce on 2022-07-05.

Israeli AI transcription unicorn Verbit is laying off approximately 80 employees, representing 10% of its workforce, as part of an organizational restructuring aimed at accelerating its path to profitability. The layoffs, announced in July 2022, will affect mostly U.S.-based staff, with 30 employees in Israel also departing. This move comes just eight months after the company secured a $250 million funding round at a $2 billion valuation. CEO Tom Livne cited the need to adapt after a period of "hypergrowth," which included a fivefold increase in staff and six acquisitions over 18 months. The restructuring into business divisions is intended to eliminate redundancies from those acquisitions while positioning the company, which had reached $100 million in annual recurring revenue, for continued growth and future acquisitions in the competitive tech and accessibility industry.

Transmit Security, a cybersecurity unicorn, recently laid off 27 employees, primarily in marketing and sales development roles, representing about 7% of its 400-person workforce. Seven of those affected were based in Israel. The layoffs, part of an organizational restructuring, occurred around July 5, 2022, as the company adjusted its operations in the competitive tech startup landscape.

Outschool, a $3 billion-valued marketplace for virtual after-school programs, laid off 31 employees, representing 18% of its workforce, in June 2022. The company, which had grown rapidly to 164 employees after raising multiple funding rounds in a short period, cited shifting market conditions as the reason. CEO Amir Nathoo stated the move was a defensive measure to optimize operations, impacting all teams including leadership. Despite the layoffs, the company asserted it maintains over three years of financial runway. This event highlights the challenges faced by growth-stage edtech startups in adapting to changing economic environments.

Event planning platform Bizzabo laid off 120 employees, representing nearly 30% of its 400-person workforce, in July 2022. The company cited market uncertainty and the need to prepare for an extended business downturn as reasons for the restructuring, aimed at improving profitability. This decision followed a period of rapid growth through acquisitions. Bizzabo, which had raised significant venture capital, provided enhanced severance and support services to the affected staff.

In July 2022, Berlin-based startup Lendis laid off 15% of its workforce, affecting approximately 18 employees out of a team of over 120. The company, which shifted from office furniture rental to B2B software for hybrid work management during the pandemic, cited the ongoing economic crisis and challenging funding environment as reasons for the cuts. Co-founder Stavros Papadopoulos explained that while Lendis continues to grow, these layoffs were necessary to navigate the downturn sustainably. Reports indicate the layoffs primarily impacted recent hires and employees still in probation periods across various departments.

Australian parcel delivery startup Sendle has laid off 12% of its workforce as a pre-emptive measure to navigate global market volatility, with the cuts announced in early July 2022. The company, which operates in the logistics and technology industry, is among several local tech firms, including Airtasker and Mycelium, reducing staff in response to cooling funding markets. This move reflects a broader trend of cost-cutting within the tech and crypto sectors amid economic uncertainty.

Israeli mobile app developer Lightricks, known for its Facetune selfie editing tool, laid off 80 employees on July 4, 2022, with 70 of those cuts occurring in Israel. This represents a 12% reduction of its global workforce, which totals 680 people across Israel, the US, China, and the UK. The company cited the global economic crisis and a need to ensure long-term stability as reasons for the layoffs, expressing concern that its subscription-based apps might be viewed as luxury products during a potential recession. The cuts were broad but focused on marketing and operations, as Lightricks shifts its strategy toward developing tools for content creators and influencers, moving away from reliance on general consumer app store sales. The company is assisting affected employees in finding new jobs.

Chessable laid off 29 employees on 2022-07-04.

Celsius, an American-Israeli cryptocurrency lending platform, is laying off approximately 150 employees, which represents about a quarter of its workforce. This significant staff reduction comes as the company grapples with a severe financial crisis, having paused all customer withdrawals three weeks prior due to extreme market conditions. The layoffs, occurring in early July 2022, are part of broader organizational changes as Celsius has hired restructuring consultants to explore options, including strategic transactions and liability restructuring, in an effort to stabilize its operations and liquidity.

German quick-commerce startup Gorillas is closing its Italian operations, laying off all 540 employees in the country as it enters liquidation procedures. The move, announced in early July 2022, is part of the company's strategic shift to focus on more profitable and promising markets, with Italy deemed not among them. This exit highlights the ongoing challenges within the digital retail and instant delivery sector, where achieving sustainable profits remains difficult despite strong initial investor interest. The shutdown involves shuttering all its Italian dark stores.

Perx Health, a Melbourne-based health tech startup, has laid off an unspecified number of employees as part of a broader wave of job cuts across Australia's startup sector. The layoffs come amid a sharp downturn in venture capital funding, driven by rising interest rates, inflation fears, and plunging consumer confidence, which has spooked investors. This has forced many cash-burning startups, including those in health tech, to tighten their belts, cut costs, and reduce headcount to extend their runway. The sector, which had enjoyed a decade of unprecedented growth with a record $10 billion invested in 2021, is now facing a harsh reality check, with several prominent startups like Milkrun, Voly, HealthMatch, and Una Brands also implementing significant layoffs or spending cuts.

LetsGetChecked on 2022-07-02.

On July 1, 2022, Teleport, a cybersecurity infrastructure company, laid off 15 employees, representing just over 6% of its 230-person workforce. CEO Ev Kontsevoy cited the need to increase efficiency amid changing economic conditions and macroeconomic headwinds. The reductions primarily affected the Sales, Customer Support, and in-house recruiting teams as part of a strategic realignment to focus resources on core growth areas. Despite the layoffs, Teleport emphasized it remains well-capitalized, is not in a hiring freeze, and continues to innovate, offering severance and healthcare benefits to those impacted.

WanderJaunt, a San Francisco-based short-term rental property management startup, ceased all operations on June 30, 2022, citing adverse economic conditions. The closure resulted in approximately 85 employees being laid off, effectively the entire workforce. Founded in 2016, the company had raised over $25 million in venture capital and operated in eight U.S. markets, managing properties for travelers and homeowners. A recorded message informed customers of the shutdown, advising those with future bookings to seek refunds directly through their booking platforms or credit card companies. This marked a full wind-down for the venture-backed hospitality firm.

Electric-vehicle startup Canoo has laid off 58 employees this year, representing about 6% of its roughly 940-person workforce, as it approaches its vehicle production deadline. The cuts, confirmed by the company, affected departments such as talent acquisition, marketing, and engineering, with the company stating it's a strategic move to reallocate resources toward manufacturing and production roles. Amid relocating its headquarters to Arkansas and aiming to start production of its lifestyle vehicles this year, Canoo faces uncertainty, with potential delays in its Arkansas and Oklahoma production timelines and ongoing hiring efforts despite the layoffs.

Stream, a company in the technology industry, has laid off a portion of its workforce. The exact number of employees affected and the percentage relative to the total employee count are not specified in the available information. The layoffs appear to be part of a broader restructuring or strategic adjustment, though the specific reason and context are not detailed. The date of the event is also not provided. As a technology firm, Stream operates at a scale that supports its platform services, but further details on company size are unavailable. This move reflects ongoing challenges or shifts within the tech sector.

Nate laid off 30 employees representing approximately 20% of its workforce on 2022-06-30.

Sundae, a San Francisco-based real estate technology startup, laid off 15% of its workforce in mid-June 2022. While the exact number of affected employees wasn't disclosed, the company had approximately 180 employees as of July 2021, suggesting around 27 people were let go. The layoffs primarily impacted staff in the company's newest markets. CEO Josh Stech cited the need to ensure the company's long-term future, acknowledging "slower than expected growth" in late 2021. Despite recently expanding to 20 markets and having raised significant venture capital, the fast-growing proptech firm made this difficult decision to adjust its operations amid changing market conditions.

Gavelytics, a seven-year-old legal tech startup specializing in litigation analytics, is shutting down on June 30, resulting in layoffs for its entire team. The company, which had raised a total of $5.7 million in funding, was unable to secure sufficient financing to continue operations despite its innovative products and client base that included major law firms and insurance companies. Founder and CEO Rick Merrill cited the inability to grow the business fast enough as the primary reason for the closure. The company, which pioneered state court analytics and expanded to cover multiple states and millions of litigation briefs, will cease operations, marking the end of its efforts in the legal technology industry.

Finleap Connect laid off 14 employees representing approximately 10% of its workforce on 2022-06-30.

Stash Financial laid off 40 employees representing approximately 8% of its workforce on 2022-06-30.

In June 2022, cybersecurity company Snyk laid off approximately 5% of its global workforce as part of organizational restructuring aimed at improving operational efficiency and balancing profitability with growth amid economic headwinds. The layoffs followed a period of rapid expansion where the company tripled its team size and acquired multiple companies. Snyk, which provides a developer security platform, stated the changes were necessary to sharpen focus, better meet customer needs, and ensure long-term success in a shifting market environment.

Enjoy Technology, a Palo Alto-based mobile retail startup founded by former Apple executive Ron Johnson, has filed for Chapter 11 bankruptcy and is laying off over 400 employees in the U.K., representing about 18% of its workforce. The company, which went public via a SPAC merger less than a year ago, cited a rapidly declining cash position that left it unable to cover operating expenses like payroll. Enjoy, which had raised significant venture funding, is selling itself to Asurion LLC and plans to continue operating during bankruptcy proceedings. This situation reflects broader challenges among companies that went public through SPACs, with many facing delisting risks due to low stock prices.

Abra laid off 12 employees representing approximately 5% of its workforce on 2022-06-30.

Unity laid off 200 employees representing approximately 4% of its workforce on 2022-06-29.

Parallel Wireless laid off 60 employees on 2022-06-29.

Qumulo laid off 80 employees representing approximately 19% of its workforce on 2022-06-29.

Toppr, an edtech startup owned by BYJU'S, laid off over 350 employees in late June 2022, following its acquisition by the larger company. The layoffs primarily affected content and media teams, including subject experts and developers, as BYJU'S restructured and aligned business lines post-acquisition. Employees were asked to resign by June 29 or face termination, with severance including notice pay and additional compensation. This move occurred shortly after layoffs at another BYJU'S subsidiary, WhiteHat Jr, reflecting broader adjustments in the edtech industry amid shifting business priorities.

Australian neobank Volt, a challenger in the financial technology sector, has been forced to close and return its banking license after failing to secure the necessary capital to scale its operations. The company, which had around 6,000 customers, is now urging them to withdraw their funds as it winds down. This shutdown, announced in late June 2022, follows a similar fate for other Australian neobanks like Xinja, highlighting the significant capital-raising challenges faced by new entrants trying to compete with the country's established banking oligopoly. Volt's CEO cited tough global economic conditions and an immature local venture capital landscape as key reasons for its inability to continue.

Baton laid off 16 employees representing approximately 25% of its workforce on 2022-06-29.

In June 2022, online interior design startup Modsy ceased its core design services, resulting in layoffs, particularly among its design team, and disrupting customer orders. While the exact number of employees affected wasn't disclosed, the cuts followed a failed acquisition deal. The company, which had operated for seven years, pivoted its focus to developing a SaaS platform called Modsy Pro, a software service aimed at professional interior designers. This shift marked a significant strategic change from its original consumer-facing model of AI-powered virtual room design and furniture sales.

Substack laid off 13 employees representing approximately 14% of its workforce on 2022-06-29.

HomeLight, a real estate technology company, announced a workforce reduction to ensure its long-term financial sustainability and ability to operate independently. The layoffs, which occurred today, are part of a broader effort to scale the business responsibly. While the exact number of employees affected and the total company size were not disclosed in the post, the company emphasized providing severance, healthcare, and job support to those impacted. HomeLight expressed gratitude for the departing team members' contributions to its mission of simplifying real estate.

Degreed, an enterprise learning platform company, announced a difficult workforce reduction. While the exact number of employees laid off was not specified in the CEO's statement, the decision was made to refocus the organization on future opportunities, necessitating a change in how work is done. The layoffs occurred on the date of the post, approximately three years ago. The company, operating in the EdTech industry, expressed deep respect for the impacted colleagues and committed to supporting their transition, with the CEO emphasizing a strong belief in Degreed's future despite the challenging restructuring.

Gurugram-based EV mobility startup Oye Rickshaw laid off 40 employees earlier this month, representing 20% of its 200-person workforce, amid a market downturn and mounting losses. The company, backed by Matrix Partners, cited the need to ensure stability and restructure teams across verticals. Sources indicate the layoffs primarily affected the struggling 'Ride business'—an e-rickshaw aggregator service that has been difficult to scale due to challenges with driver adoption of the app. The startup is reportedly considering winding down this segment while continuing its delivery and battery swapping operations. This move reflects broader pressures in the Indian startup ecosystem, where over 10,000 employees have been laid off in 2022.

Property manager AvantStay, a short-term rental company in the travel industry with around 600 employees, confirmed a net reduction of 19 staff over the past month. This resulted from 43 job cuts, which the company described as part of a "gradual reorganization" rather than traditional layoffs, offset by some hiring during the period. The announcement was made on a Friday, indicating the changes occurred within the prior 30 days.

Online car retailer Clutch has laid off 76 employees, representing about 22% of its workforce, as part of a strategic move to slow growth and extend its financial runway amid challenging market conditions. The layoffs, which occurred on June 14, reduced the company's headcount from approximately 340 to between 260 and 270 people. CEO Dan Park cited the need to prepare for a prolonged period of economic uncertainty, influenced by broader tech industry trends and guidance from investors like Sequoia Capital. This Canadian tech startup, which secured a $100 million Series B in 2021, aims to ensure stability for the next 24 months by cutting costs and limiting hiring, despite remaining well-capitalized.

Niantic laid off 85 employees representing approximately 8% of its workforce on 2022-06-29.

WhiteHat Jr, a children's coding platform owned by Indian edtech giant Byju's, has laid off approximately 300 employees globally in late June 2022. This workforce reduction is part of a broader "realignment" of business priorities by the parent company, Byju's, which cited a need to optimize teams for long-term growth. The layoffs occur amid a significant market downturn affecting the global and Indian startup ecosystem, particularly in the edtech and consumer tech sectors, where numerous companies have recently cut jobs. This move reflects the challenging investment climate and ongoing corrections within the industry.

Bright Machines laid off 30 employees representing approximately 8% of its workforce on 2022-06-28.

In June 2022, the employee wellness startup Nova Benefits, based in Bengaluru, laid off approximately 30% of its workforce as part of a restructuring effort amid a tepid funding climate. While the exact number was not officially confirmed, the company had around 200 employees at the time, suggesting about 60 individuals were affected. This move occurred while Nova was in talks to raise a new funding round of around $30 million. The layoffs, which included a prior round letting go of about a dozen employees, reflect a broader trend of workforce reductions across early-stage Indian startups during that period, as companies adjusted to challenging market conditions.

HealthMatch, an Australian health tech startup, laid off 18 employees, representing 50% of its global workforce, as confirmed by founder Manuri Gunawardena on Tuesday. The clinical trials platform, which has raised $18 million from investors including Square Peg, made the difficult decision due to punishing market conditions, including investor concerns over inflation and interest rates that have smashed growth company valuations. To conserve cash and navigate a bleak funding horizon over the next 12-24 months, the company reduced staff, aiming to ensure its survival and continued operations, including its recent launch in the US. This move reflects a broader trend of Australian startups cutting staff to delay fundraising and accelerate profitability amid a tough economic climate.

Cryptocurrency exchange Huobi Global is planning significant layoffs, potentially cutting over 30% of its workforce, which translates to at least 300 employees out of a total exceeding 1,000. This restructuring, reported in June 2022, is a direct response to a sharp decline in revenue following China's comprehensive ban on crypto trading. The company had been phasing out services for Chinese users since September 2021, with complete access revoked by the end of that year. As a major Seychelles-based exchange, Huobi cited the need to realign its manpower with operational needs amid the challenging market downturn affecting the broader crypto industry.

In June 2022, Egyptian healthtech startup Vezeeta, which operates across the Middle East and Africa, laid off approximately 10% of its workforce, affecting around 50 employees out of a total of nearly 500. The company, which had evolved from an "Uber for Ambulance" model to a subscription-based doctor booking platform serving 10 million patients, did not publicly state a reason for the cuts. However, the layoffs occurred amid a broader trend of workforce reductions in the tech sector, including other healthtech firms globally, as startups adjusted to shifting market conditions and venture capital landscapes. Vezeeta had previously raised significant funding, including a $40 million Series D round in 2020, and was considered a promising "soonicorn" in the region.

In November 2022, StockX conducted its second round of layoffs within four months, affecting under 80 employees, which represents about five percent of its workforce. The Detroit-based sneaker and streetwear resale marketplace cited the challenges of scaling its business amid a struggling global economy as the reason for the cuts. All impacted employees held corporate roles and received severance packages along with extended benefits. Despite this restructuring, StockX noted it would continue hiring in certain areas, such as brand reputation and customer support, entering its peak season. This followed a larger layoff in June 2022, when eight percent of employees were let go.

Tesla laid off nearly 200 employees from its Autopilot team, who were involved in training the company's AI, as part of a restructuring effort.

Cue laid off 170 employees on 2022-06-27.