Layoff Events

Lummo, an Indonesia-headquartered SaaS startup backed by Jeff Bezos and Sequoia Capital, laid off approximately 50-60 employees from its Bengaluru office in early June 2022. This followed earlier layoffs of 100-120 employees in Jakarta. The company, which had around 500 total employees across both locations, cited reasons including role redundancy, restructuring, and cost-cutting to extend its financial runway. Affected staff, primarily in engineering and product roles, were notified via direct email, with the company offering severance pay and assistance in finding new opportunities. These cuts reflect broader challenges and strategic shifts within the tech startup ecosystem.

Gold loan fintech platform Rupeek laid off over 180 employees in June 2022, representing 10-15% of its workforce of over 1,200. The company cited a subdued macroeconomic environment and the need to recalibrate strategy, reduce costs, and create a leaner organization to ensure sustenance and growth. This move marked one of the first significant layoffs in the fintech sector amid a challenging funding winter. Despite reporting strong growth and a $1 billion annual disbursement run rate, Rupeek undertook this restructuring to align its workforce with revised strategic plans, acknowledging the difficulty of the decision while committing to support affected employees.

Clearco, a Canadian fintech startup providing capital to e-commerce businesses, has laid off a portion of its staff in Dublin, Ireland. The cuts, reported to be around 10% of the local team, affect a hub that had 75 employees just months prior. This move comes only three months after the company entered the Irish market with a pledge to invest €100 million and hire 125 people there. Clearco attributed the layoffs to a shifting global economic landscape, citing macroeconomic headwinds like inflation, supply chain issues, and the war in Ukraine. The company confirmed these cuts are isolated to its Dublin operations and stated it still plans to hire more staff there later this year. This restructuring occurs alongside Clearco's recent expansion into Germany, where it has pledged a €500 million investment.

Sendoso, a SoftBank-backed marketing and corporate gifting startup, laid off approximately 100 employees on Monday, June 6, 2022, representing about 14% of its then 700-person workforce. The cuts affected staff across business units in the United States and Ireland. The company cited market volatility, global crises impacting the tech sector, and the need to adjust operations as reasons for the reduction. This move occurred amid a broader wave of tech industry downsizing, where falling valuations and tightening venture capital have forced many startups to cut costs. Sendoso had recently raised a $100 million Series C round led by SoftBank in September 2021 and was in the process of relocating its headquarters from San Francisco to Phoenix.

Cybersecurity firm Deep Instinct, a New York-based AI-driven malware prevention company founded in 2015, conducted layoffs this week, affecting employees primarily in sales and business development roles. The exact number of employees let go and the percentage of the workforce impacted remain undisclosed, but the cuts occurred on Monday amid a broader trend of tech industry downsizing in 2023. Deep Instinct, which has raised over $259 million in venture funding, including a $67 million Series D in 2021, is the latest tech company to adjust its staffing in response to shifting macroeconomic conditions, following a record year for venture funding and hiring in 2022.

Dutchie laid off 50 employees representing approximately 7% of its workforce on 2022-06-06.

Mumbai-based edtech unicorn Eruditus, backed by SoftBank, has laid off 40 employees as part of a broader workforce reduction. This move, carried out over the past month, is part of a trend where the company is scaling back hiring significantly, planning to add only 100-150 new hires this year compared to 1,300 in the previous 12 months. Consequently, the talent acquisition team was halved, with 15 members let go from a team of 30. In total, 80 employees have recently departed, with half leaving voluntarily. The layoffs are aimed at optimizing costs and steering toward profitability amid a cautious funding environment, even though Eruditus has substantial financial reserves, including a recent $350 million debt raise. The company partners with top global business schools to offer executive education programs.

Tesla announced layoffs on June 3, 2022, cutting 10% of its salaried workforce, which translates to nearly 10,000 employees based on its global headcount of 99,290 at the end of 2021. CEO Elon Musk cited overstaffing and a "super bad feeling" about the economy as reasons, while clarifying that production workers would not be affected and hourly staffing would increase. The news triggered an 8-9% drop in Tesla's stock and drew a pointed response from President Joe Biden, who contrasted the cuts with investments by Ford and Stellantis in electric vehicles. As a major player in the automotive and clean energy industry, Tesla's move reflects broader economic uncertainties and strategic adjustments in scaling its operations.

Superhuman, a premium email app startup backed by Tiger Global, laid off 22% of its workforce, affecting 23 employees, on June 3, 2022. This reduction comes just a month after the company launched its long-awaited integration with Microsoft Outlook, a move aimed at expanding its user base beyond Gmail. Despite raising $126 million and reaching an $825 million valuation, the company is part of a broader wave of tech layoffs driven by shifting venture capital investment and efforts to control spending. The layoffs raise questions about the immediate impact of the Outlook launch, though Superhuman offered affected staff severance and support services.

Afterverse, a gaming company under Movile (owner of iFood), laid off approximately 60 employees on June 3, 2022, representing about 20% of its then 270-person workforce. The layoffs are attributed to global market conditions and internal strategic realignments, as the company reprioritizes initiatives. This move places Afterverse among numerous tech startups in Brazil, such as Mercado Bitcoin and VTEX, that are reducing staff amid a challenging investment climate. The company, known for games like PK XD and Crafty Lands, is focusing on reaching profitability and scaling its operations, having recently hired UBS to seek a strategic partner.

Clubhouse on 2022-06-03.

5B Solar representing approximately 25% of its workforce on 2022-06-03.

Food52, a food and home goods publisher, laid off 21 employees on Thursday, representing about 15% of its total staff. This marks the company's second round of cuts in two months, following 20 layoffs in April attributed to internal reorganization. The latest reductions primarily affected the editorial team, which now has 15 members, while remaining editorial and some creative staff have moved to 32-hour workweeks with full-time benefits.

Gemini laid off 100 employees representing approximately 10% of its workforce on 2022-06-02.

Insurtech company Policygenius laid off approximately 25% of its workforce, affecting an estimated 170 employees, in early June 2022. This significant reduction came less than three months after the firm raised $125 million in a Series E funding round. CEO Jennifer Fitzgerald cited the sudden and dramatic economic shift as the reason, stating the company needed to adapt its strategy. Policygenius, which operates an online platform for comparing and purchasing insurance, had reported strong growth in its home and auto insurance segments prior to the layoffs. The company, positioned as a tech-enabled brokerage, stated it would continue to invest in its core insurance businesses despite the workforce reduction.

Malaysian startup Kaodim, a home services platform in the gig economy, is shutting down entirely on July 1, 2022, resulting in the layoff of its entire workforce. The company, founded in 2014, cited insurmountable challenges including the prolonged impact of Covid-19 lockdowns, which caused operational disruptions, labor shortages, and significantly higher running costs that degraded its service quality and business viability.

Yojak, a Gurugram-based B2B ecommerce marketplace in the construction industry, laid off approximately 140 employees in April and May as it shut down its domestic operations. The startup, backed by Info Edge, had a total workforce of around 280 before the cuts, meaning the layoffs affected about half of its staff. This decision came after the company ran out of funds to sustain its India-focused business, despite receiving $3.8 million in Pre-Series A funding just nine months earlier. Yojak will now pivot to focus exclusively on its export division, targeting markets like the US and the Middle East, as it shifts from serving local retailers to connecting Indian manufacturers with international buyers.

Esme Learning on 2022-06-02.

Supply-chain technology startup Stord laid off 59 employees, representing about 8% of its 700-person workforce, on June 2, 2022. This move came as a shock to many, occurring less than a month after the company announced $120 million in new Series D funding and a $1.3 billion valuation. Leadership attributed the layoffs to having hired too quickly, despite previously stating the new capital was a "war chest" to weather tough times. The company, which provides a cloud-based logistics platform connecting warehouses and offering fulfillment services, emphasized it remains in a strong financial position with record revenue growth. This event reflects broader economic pressures and a wave of layoffs impacting the tech and supply-chain sectors.

In June 2022, social app company IRL laid off approximately 25 employees, representing 25% of its team. The layoffs were attributed to broader market dynamics and a strategic decision to right-size the workforce after the company had rapidly expanded its headcount by 3.5 times the previous year. Despite the cuts, CEO Abraham Shafi stated that IRL had sufficient cash reserves to last well into 2024. The company, which had achieved unicorn status a year earlier following a $170 million Series C funding round led by SoftBank, framed the move as a necessary step toward building a more disciplined and impactful organization, emphasizing adaptability in a challenging economic climate.

Australian digital asset marketplace Envato has initiated a restructuring process, resulting in approximately 100 redundancies globally. This represents about one in seven employees, based on the company's 2020 headcount of around 600. Announced in early June 2022, the layoffs affect roles across Australia, New Zealand, Mexico, and the USA. CEO Hichame Assi stated the cuts are part of an effort to sharpen the company's business focus, update its core areas, and wind down ancillary products. The tech industry firm is providing impacted staff with a minimum of 12 weeks' pay and outplacement support.

Gather laid off 30 employees representing approximately 33% of its workforce on 2022-06-02.

Rain on 2022-06-02.

Favo laid off 170 employees on 2022-06-02.

Carbon Health laid off 250 employees representing approximately 8% of its workforce on 2022-06-02.

Edtech startup Udayy, backed by Info Edge, has shut down entirely and laid off all its employees, affecting nearly 100 staff members. The closure, announced in June 2022, was driven by stagnating growth as children returned to physical schools in the post-pandemic world, undermining the company's online live-learning model for grades 1-5. After evaluating various pivots, the founders decided to cease operations, refund customers, and return remaining capital to investors. The company provided severance packages and assisted nearly all affected employees in finding new jobs.

In June 2022, enterprise video messaging startup Loom laid off 34 employees, representing 14% of its workforce. The company, which had reached a $1.53 billion valuation and unicorn status a year prior, cited the need to operate more sustainably amid increased economic uncertainty. This move impacted teams across product and people operations. Like other remote-work beneficiaries during the pandemic, Loom saw rapid growth but later adjusted its strategy to ensure long-term viability. The Andreessen Horowitz-backed firm, serving millions of users globally, emphasized support for affected employees through severance and career assistance while expressing confidence in its future path.

In June 2022, Pakistani logistics tech startup Truck It In laid off approximately 30% of its workforce as part of a business overhaul to confront global economic uncertainty. The company, which had digitized logistics for hundreds of businesses and thousands of truckers, stated the move was necessary to recalibrate its strategy toward sustainable growth and optimized operations. While the exact number of employees affected wasn't specified, the layoffs followed a trend seen in other regional startups like Airlift and Swvl. Truck It In offered generous severance packages and assistance with alternate employment to impacted staff, emphasizing its commitment to a leaner operational model while remaining bullish on Pakistan's digital freight future.

Amsterdam-based geolocation technology company TomTom is laying off 500 employees, representing about 10% of its global workforce, with the cuts concentrated in its maps unit. The restructuring, announced in June 2022, is a result of significant improvements in the company's automated mapmaking platform, which reduces the need for manual labor. This move is part of TomTom's ongoing strategic shift, initiated in 2019, to focus on providing high-definition maps for the autonomous vehicle industry and other digital services. The layoffs reflect broader challenges in the tech sector, including stock market pressures, as the company aims to streamline operations and enhance efficiency through increased automation.

Cannabis delivery and retail startup Eaze laid off approximately 25 employees on June 1, 2022, as part of ongoing restructuring efforts following its acquisition of Green Dragon earlier in January. The cuts, which affected engineering and live operations teams, aim to increase efficiencies within the merged company amid a maturing and competitive cannabis market. This follows previous layoffs in February and October, reflecting the company's strategic pivot from solely delivery to also operating its own dispensaries. Eaze, which operates in California, Colorado, Michigan, and Florida, continues to navigate industry pressures and executive turnover while focusing on long-term growth.

Impala, a tech company, recently conducted layoffs as part of a broader trend in the industry. While specific numbers for Impala were not detailed in the article, the context highlights ongoing workforce reductions across VC-funded tech firms, particularly in mid-2022. These cuts are often driven by financial pressures, such as running out of money or market downturns, affecting companies of various scales. The layoffs reflect a challenging period where even high-growth startups are reassessing their staffing needs, though the exact percentage of employees impacted at Impala remains unspecified. The industry continues to see patterns of companies letting people go, sometimes abruptly, as they navigate economic uncertainties.

On June 1, 2022, the Brazilian cryptocurrency group 2TM, owner of Mercado Bitcoin and valued at $2.1 billion, laid off 90 employees, representing about 12% of its workforce of approximately 750. The company cited a challenging global economic environment, including rising interest rates, inflation, and significant volatility in Bitcoin's value, which had halved over the previous six months, as reasons for the restructuring. This move was part of broader cost-cutting measures amid a wave of layoffs at other Brazilian unicorn startups. 2TM, which had expanded through acquisitions like the Portuguese digital currency exchange Criptoloja, offered affected employees a benefits package including job placement assistance and extended health insurance.

Cybereason, an Israeli cybersecurity company, is laying off approximately 100 employees, affecting staff in its headquarters in Israel as well as offices in the U.S. and Europe. This reduction impacts about 6.7% of its global workforce of 1,500. The layoffs, reported in June 2022, come as the company, backed by investors like SoftBank's Vision Fund 2, had confidentially filed for a U.S. IPO earlier that year, aiming for a valuation exceeding $5 billion. Operating in the competitive cybersecurity industry, Cybereason provides AI-driven software for threat detection and ransomware protection. The move appears to be part of broader strategic adjustments within the tech sector, possibly to streamline operations ahead of its planned public offering.

Curve, a fintech company, has announced the closure of its AltFi media business after a decade of operation, resulting in layoffs for its entire staff. While the exact number of employees affected hasn't been disclosed, the shutdown is attributed to severe financial headwinds over the past 18 months. The company expressed gratitude to its team and community, marking the end of its role in covering the UK fintech sector. This move reflects broader challenges within the fintech media and information services industry.

San Francisco-based real estate tech startup Side laid off approximately 10% of its workforce in early June 2022, citing over-expansion and market volatility. The company, which had been on an IPO track after raising over $250 million and reaching a $2.5 billion valuation, admitted it grew faster than it could train and support new hires. Facing economic shifts and rising mortgage rates, Side made the strategic cut to prepare for potential short-term impacts while maintaining services for its agent partners. This move followed a period of rapid growth, including expansion into 15 new states in 2021 and more than doubled revenue.

Real estate home-loan startup Tomo laid off 44 employees, representing almost a third of its roughly 150-person workforce, on Tuesday. The company, which had raised $110 million in venture capital over the past year, is halting expansion plans due to deteriorating market conditions. The layoffs are part of a broader wave in the mortgage industry, driven by soaring interest rates and a cooling housing market, which have slowed loan volumes and tightened venture capital funding.

Israeli mobile gaming company Playtika announced layoffs of 250 employees on May 31, 2022, representing about 6% of its then 4,000-strong global workforce. The cuts are part of a restructuring to consolidate operations, leading to the closure of game development studios in Los Angeles, Montreal, and London, with some activities transferred to Israel and Poland. This move, which includes canceling new game projects, aims to streamline the company for growth and profitability amid a challenging post-pandemic market. The broader gaming industry is facing pressure as user engagement declines with the easing of lockdowns, contributing to a significant drop in Playtika's share price since its 2021 IPO. Despite remaining profitable, the company is adjusting to economic headwinds, including rising interest rates and inflation, which have prompted similar layoffs across the tech and gaming sectors.

Cerebral on 2022-05-31.

The Israeli-American startup Getta (formerly Gettacar) laid off 30 employees in May 2022 after closing its R&D center in Rehovot. The company, which operated a used car sales platform in the U.S., faced significant difficulties and executed a pivot, including a rebranding and extensive cuts. At its peak, Getta employed around 200 staff across Israel and Philadelphia, but now reportedly retains only a few dozen. This restructuring reflects challenges in the competitive automotive e-commerce sector, impacting a significant portion of its workforce.

On May 31, 2022, Replicated, a company in the enterprise software industry, laid off 50 employees from its Sales, Marketing, Customer Success, and G/A teams. The CEO, Grant Miller, took responsibility for the decision, citing over-hiring in pursuit of aggressive growth as the primary reason. This restructuring aims to shift the company toward efficient growth and achieve profitability within 18-24 months, extending its financial runway to over three years. The layoffs were part of a broader adjustment to refocus on customers and product execution, ensuring long-term sustainability for its enterprise distribution tools.

Mobile Premier League (MPL), an Indian esports and skill gaming startup, laid off 100 employees, representing about 10% of its workforce, in late May 2022. This move came as the company exited the Indonesian market and discontinued its in-app streaming product, responding to a broader slowdown in the startup ecosystem after a pandemic-fueled boom. The Bengaluru-based founders cited a market shift toward rewarding profitable growth over aggressive expansion, necessitating rapid restructuring to ensure long-term health. Affected employees received full severance and extended ESOP options.

In May 2022, the fintech company SumUp laid off approximately 100 employees in Brazil, citing the "economic instability" in the region as a key reason. This reduction affected its team in Brazil and represented a small percentage of its global workforce of around 3,000. The layoffs were part of a broader trend of workforce reductions within the fintech startup sector, which was under pressure to demonstrate profitability after a period of rapid growth. SumUp, a prominent payment provider, had been seeking new funding earlier in the year at a high valuation, but market conditions were becoming more challenging. The decision followed earlier layoffs at other fintech firms like Klarna, Kontist, and Nuri, highlighting ongoing pressures in the industry.

SWVL, an Egypt-born, Dubai-headquartered mobility startup, announced plans on May 30, 2022, to lay off approximately 32% of its workforce, affecting around 400 employees out of a total of over 1,330. This significant downsizing comes just two months after the company went public via a SPAC merger, targeting a $1.5 billion valuation, though its market value had since fallen to around $500-$600 million. The layoffs are part of a broader cost-cutting trend in the tech industry, driven by economic downturn pressures and valuation corrections. Despite recent acquisitions, including a $100 million purchase of Zeelo, SWVL cited the need to streamline operations and reduce roles automated by engineering investments as reasons for the workforce reduction.

Akerna on 2022-05-27.

Terminus on 2022-05-27.

New York-based fintech startup Daloopa laid off around 40 to 50 employees from its Noida, India office on May 27, 2022, marking its second round of job cuts in two months. The layoffs affected trainees, mid-level, and senior employees, including some hired as recently as April and May. The company, which provides AI solutions for investment research data and had raised $20 million in Series A funding led by Credit Suisse, reportedly faced challenges in securing subsequent funding. This move reflects broader difficulties in the tech startup sector, where investors like SoftBank and Tiger Global have reduced exposure amid market downturns.

FrontRow, a Bengaluru-based edtech startup backed by Lightspeed and other investors, laid off 145 employees on May 27, representing about 30% of its 500-person workforce. The cuts primarily impacted the sales, quality control, and HR teams as the company seeks to reduce costs and improve efficiency amid a broader funding crunch and challenging market conditions. Notably, affected employees did not receive a severance package, though they were paid their May salaries. This restructuring comes just eight months after FrontRow raised $14 million in a Series A round, highlighting the pressures facing startups in the competitive non-academic upskilling industry.

Global sports streaming service DAZN is laying off approximately 50 employees at its London headquarters, representing about 5% of its UK workforce and 2% of its global team of over 2,500. The redundancies, announced in late May 2022, are part of a strategic shift to decentralize operations and focus on growth in key markets like Spain, Italy, and Germany. Concurrently, DAZN is hiring around 50 new staff in Spain ahead of the La Liga season launch, indicating a realignment rather than a simple downsizing. The company, which has expanded rapidly since its 2016 launch to operate in 200 countries, continues to invest in sports rights and regional expansion despite these organizational adjustments.

VTEX laid off 200 employees representing approximately 13% of its workforce on 2022-05-26.

Latin American cryptocurrency exchange Bitso laid off 80 employees in May 2022, reducing its workforce from over 700. This cut, representing over 11% of its staff, was part of a strategic restructuring to align employee skills with its long-term business goals and to increase agility in the competitive crypto industry. The Mexico-based company, a unicorn with over four million users across the region, stated the layoffs were not due to fundraising challenges and occurred amidst a broader tech industry downturn, as seen with other regional exchanges like Buenbit.