Layoff Events

Instacart laid off 1,877 employees on 2021-01-21.

Pocketmath, a small adtech company with around 21 employees, has ceased operations and effectively laid off its entire workforce after failing to secure a buyer. The shutdown, confirmed in early 2021, followed allegations of unpaid bills and lawsuits from partners like Smaato and Pulsepoint, which claimed hundreds of thousands in owed payments. Operating for about a decade, Pocketmath provided programmatic mobile ad technology and had raised $20 million from investors including Rakuten. The closure highlights the intense competition in the adtech industry, where smaller firms struggle against giants like Google and The Trade Desk, leading to consolidation and financial strain.

Dropbox is reducing its global workforce by approximately 11%, which translates to about 315 employees being laid off. The announcement was made by CEO Drew Houston in an employee memo on Wednesday, citing the need to create a healthy and thriving business for the future. The company aims to refocus on key priorities such as evolving its core experience, investing in new products, and driving operational excellence. This restructuring follows Dropbox's shift to a permanent remote work policy, which has reduced the need for in-office resources. Additionally, Chief Operating Officer Olivia Nottebohm will be leaving the company on February 5.

Aura Financial, a certified Community Development Financial Institution (CDFI) and fintech innovator focused on serving underbanked communities, has closed its doors after eight years of operation. Founded in 2012 to provide economic justice and financial tools to minorities, Latinos, and low-income families, the company cited the broader impacts of the pandemic, recent legislation, and challenging economic conditions as contributing factors to its shutdown. While the exact number of layoffs was not specified, the closure resulted in the loss of all positions at the company. Aura had facilitated nearly $700 million in responsible loans to over 350,000 customers, helping many improve their credit scores and avoid predatory lenders. The closure marks the end of its mission to expand financial inclusivity through technology and community-focused lending.

Simple representing approximately 100% of its workforce on 2021-01-07.

WhiteHat Jr, an edtech company owned by BYJU'S, is undergoing a significant internal reshuffle affecting approximately 1,800 employees, who represent a substantial portion of its workforce. While CEO Karan Bajaj describes this as a transition to new roles aligned with the company's focus on growth verticals like math courses, employees report being offered positions at BYJU'S or severance packages, effectively feeling forced out. This restructuring, occurring in late 2020 and early 2021, aims to cut costs by reducing support for international markets such as the US, UK, and Australia-New Zealand. As a mid-sized player in the competitive edtech industry, WhiteHat Jr's move reflects broader shifts toward integrating with BYJU'S and refocusing on B2B solutions and global expansion, amidst employee concerns about job security and the nature of the transition.

Pulse Secure laid off 78 employees on 2020-12-23.

Actifio laid off 54 employees on 2020-12-16.

In December 2020, Montreal-based flexible workspace startup Breather underwent a major restructuring, laying off 90 employees, which represented 75% of its then 120-person workforce. The company reduced its staff to just 30 people. This drastic downsizing was part of a strategic pivot away from being a physical workspace operator, as the COVID-19 pandemic severely impacted its business model. Breather abandoned hundreds of leases in the U.S. and U.K., filing for insolvency processes for those subsidiaries, and planned to exit its remaining 79 Canadian leases. CEO Bryan Murphy announced the company would shift to a pure technology play, aiming to become an online marketplace for third-party flexible office space, akin to Airbnb, rather than continuing as a capital-intensive operator like WeWork.

OYO laid off 600 employees on 2020-12-08.

Toronto-based fintech startup Aya, which specializes in payments and administration for employee benefits packages, has secured $3.7 million CAD in seed funding. The round was led by MaRS Investment Accelerator Fund and Luge Capital, with participation from Anthemis Group, BDC Capital, StandUp Ventures, and angel investors. Founded in 2018, Aya operates at the intersection of fintech and healthtech, offering solutions like Health Spending Accounts (HSA) and Wellness Spending Accounts (WSA) through partnerships with brokers and insurance carriers. The new capital will fuel customer acquisition, product development, and expansion into the US market, building on earlier funding and existing partnerships with several brokerage firms.

In November 2020, short-term rental startup Domio shut down and began selling its assets after failing to secure $10 million in additional capital. The company laid off the majority of its staff earlier that month, though the exact number of employees affected was not specified. Founded in 2016, Domio operated in the competitive short-term rental industry but faced significant challenges, including scrutiny over renting apartments under pseudonyms on Airbnb, which led to the suspension of its accounts. The co-founders had resigned in late September, and the company's closure marked the end of its operations amid financial struggles in the hospitality and real estate sectors.

Tidepool, a nonprofit organization in the diabetes technology industry, has undergone a layoff affecting an unspecified number of employees. The announcement was made via a LinkedIn post, with the company expressing gratitude for the team's contributions and acknowledging the challenging circumstances. While exact figures regarding the total workforce, percentage impacted, and specific reasons are not detailed in the provided content, the supportive comments from the community highlight the value of the team's work in advancing diabetes care. The layoff appears to have occurred around late 2020 or early 2021, as comments reference hopes for better news in 2021.

In November 2020, Seattle-based data management startup Igneous laid off an unspecified number of employees, attributing the cuts to a difficult economic environment. The company, which specializes in petabyte-scale unstructured data management as a service, had an estimated workforce of 51 to 200 people at the time, with some reports suggesting around 75 employees. Founded in 2013 and having raised $66.7 million in venture funding, Igneous cited ongoing economic challenges as the reason for the staff reduction while emphasizing its continued commitment to serving customers and partners.

Scoop, a San Francisco-based startup that provides carpooling solutions for commuters, has laid off over 40 employees in a recent round of job cuts. This follows a previous layoff of 92 employees in April, when the company cited significantly reduced demand due to widespread office closures. The latest reductions come as the company continues to navigate challenges in the transportation and tech industry, adjusting its workforce amid ongoing shifts in commuting patterns.

Bridge Connector laid off 154 employees representing approximately 100% of its workforce on 2020-11-17.

Worksmith laid off 30 employees representing approximately 50% of its workforce on 2020-11-09.

Rubica representing approximately 100% of its workforce on 2020-11-05.

Walmart has ended its contract with Bossa Nova Robotics, effectively halting the use of around 500 inventory-scanning robots across its more than 4,700 stores. The decision, reported in late 2020, came as the retail giant found that human employees, using simpler and more cost-effective methods, could perform the shelf-monitoring tasks just as effectively. This shift was partly driven by concerns over customer reactions to the robots and a focus on practical solutions to maintain in-stock levels, a persistent challenge amid surging pandemic-driven sales. While moving away from these robots, Walmart continues to invest in other technology experiments, including designated e-commerce lab stores.

LivePerson, an AI-powered customer messaging company, is laying off 30 employees in Israel as part of a cooperation agreement with Indian IT firm Infosys, signed in early November 2020. This reduction affects about 8.6% of its 350-person workforce in Israel. While the partnership aims to accelerate growth and meet rising demand for digital solutions, particularly during the social distancing era, it also involves shifting 30 employees to Infosys and relocating 10 others internally. The layoffs coincide with a challenging quarter where remote work trends contributed to a $24 million revenue decline, despite the company's overall stock performance. LivePerson continues hiring in other areas despite this downsizing.

Flexible office provider Knotel laid off approximately 20 employees on October 29, 2020, reducing its headcount to just over 250 staff. This cut, representing around 7-8% of its workforce, was driven by a slower-than-expected recovery in office demand during the COVID-19 pandemic. CEO Amol Sarva acknowledged that anticipated market improvements had not materialized, leading to high vacancies in the company's portfolio. As part of its restructuring, Knotel is continuing to reduce its office footprint in an effort to reach profitability by the end of the first quarter of 2021. The company, which achieved unicorn status in 2019, operates in the competitive flex-space industry and had been seeking to raise up to $100 million in funding amid significant financial challenges.

Remedy laid off 82 employees on 2020-10-29.

Cheetah, a San Francisco-based startup that supplies groceries and restaurants, laid off 26 employees last month, though the exact number and percentage remain undisclosed. The company, which had recently pivoted to consumer grocery delivery after raising $36 million in April, cited the severe impact of COVID-19 on the restaurant industry as the reason for the cuts. Affecting multiple departments across the U.S. and Israel, the layoffs were not publicly announced but were acknowledged through a talent directory aimed at helping displaced workers find new opportunities.

CodeCombat, a Y Combinator-backed educational gaming company that teaches coding through interactive play, has laid off 8 employees, as confirmed by its CEO. The cuts, which represent a significant portion of the small team, specifically affected 7 salespeople and 1 product manager across the United States. The company, which has raised $8.6 million in funding, cited restructuring needs and prepared a talent directory to assist the departing employees in finding new opportunities. This move reflects ongoing adjustments in the edtech and gaming sectors, even among established startups.

Quibi, the short-form video streaming startup, laid off approximately 150 employees, representing its entire workforce, following its shutdown in early October 2020. The company, which had raised $1 billion from investors, launched six months earlier with high-profile leadership but failed to gain significant traction, attracting only around 500,000 subscribers against a target of 7 million. Operating in the streaming media industry, Quibi aimed to revolutionize mobile viewing with quick episodes but ultimately closed due to poor market adoption, affecting all departments primarily based in Los Angeles.

Zomato on 2020-10-20.

GetYourGuide laid off 90 employees representing approximately 17% of its workforce on 2020-10-14.

OLX India, the Prosus-owned online classifieds platform, has laid off approximately 250 employees from its sales and support teams. This reduction is part of a strategic shift to refocus on two core verticals: its omnichannel used car platform, Cash My Car, and its recruitment marketplace, Aasaanjobs. The decision, announced in early 2021, also involves shutting down its real estate and used goods segments in the country. The company stated the layoffs are not due to the pandemic but rather a global strategic realignment to compete more effectively, particularly against challenges like Facebook Marketplace. OLX had previously doubled its sales team to scale operations but is now streamlining to concentrate on areas where it can offer enhanced services. The affected employees are being provided with severance packages and outplacement support.

Chef on 2020-10-08.

Alto Pharmacy, an online prescription delivery startup based in San Francisco, laid off 47 employees, representing 6% of its workforce, as part of a restructuring effort to streamline operations and reallocate resources for long-term growth. The layoffs occurred despite the company recently securing a $250 million funding round led by SoftBank and benefiting from the pandemic-driven surge in telemedicine and prescription delivery services. Affected employees are being offered significant severance and extended healthcare coverage, while the company continues to hire for roles critical to its mission.

TheWrap, a 12-year-old entertainment news site, laid off or furloughed employees earlier during the COVID-19 pandemic. The layoffs occurred as the media industry faced cancellations of videos and photo shoots, a shift to remote work for reporters, and the transition of live events to digital formats. The company, which relies on advertising for about 80% of its business, has been navigating financial challenges, including postponed movie premieres and changes in ad revenue timing due to events like the Oscars being rescheduled. Despite these cuts, TheWrap remains operational, describing itself as "lean and mean," and has recently hired a new chief revenue officer to bolster its advertising efforts amid industry consolidation and ongoing pandemic-related uncertainties.

HumanForest on 2020-09-25.

In September 2020, WeWork's Chinese unit underwent a significant restructuring, selling a majority stake to Trustbridge Partners for $200 million, effectively transitioning to a Chinese-owned entity. As part of this localization and cost-cutting move, layoffs occurred within WeWork China, though the exact number of employees affected was not disclosed. The company had expanded rapidly in China since 2016, operating over 100 locations across 12 cities with 65,000 members, but faced financial challenges. Globally, WeWork, a major co-working space provider in the real estate and tech industry, served 612,000 members across 38 countries. The layoffs were tied to the strategic shift to reduce WeWork's direct involvement and control in the Chinese market amid broader financial pressures.

Air representing approximately 16% of its workforce on 2020-09-16.

NS8, a fraud prevention startup, laid off its entire workforce in September 2020, affecting approximately 200 employees. This 100% reduction came shortly after the company's CEO was arrested on fraud charges, which triggered a collapse in investor confidence and funding. The company, which had raised over $120 million, was forced to cease operations entirely. This event highlights the severe impact of leadership misconduct in the competitive cybersecurity and fintech industry, abruptly ending the venture.

HubHaus representing approximately 100% of its workforce on 2020-09-11.

In September 2020, Bleacher Report, a digital sports media company under AT&T's WarnerMedia, laid off approximately 20 employees from its London office, representing nearly the entire UK staff and leaving only a skeleton crew of about five. This reduction, affecting a significant portion of the roughly 30-person office dedicated to the B/R Football brand, was driven by Turner's exit from its UEFA Champions League broadcasting rights deal earlier that summer, which undermined the justification for maintaining the London team. The layoffs occurred amid broader corporate uncertainty following AT&T's acquisition of Time Warner, marked by leadership changes and strategic shifts, fueling speculation about Bleacher Report's future direction and potential asset sales.

Waze, the Google-owned navigation app, laid off 5 percent of its global workforce in September 2020, affecting approximately 30 employees out of a total of 555. The company also closed several offices in Asia-Pacific and Latin America as it refocused its business. The layoffs were primarily driven by the COVID-19 pandemic, which led to widespread lockdowns and a sharp decline in road travel. With fewer people commuting and using the app for daily navigation, Waze experienced significant drops in monthly active users and driven kilometers, resulting in reduced advertising revenue. This restructuring aimed to streamline operations amid the challenging economic conditions caused by the global health crisis.

In 2020, lidar startup Ouster, based in San Francisco, laid off 10% of its workforce due to the economic impact of the COVID-19 pandemic. The company, which operates in the competitive autonomous vehicle sensor industry, confirmed the reduction as part of broader cost-cutting measures amid market uncertainties. Despite this, Ouster managed to secure a $42 million Series B funding round from existing investors and reported significant revenue growth, allowing it to avoid further layoffs and maintain operations. The layoffs occurred as the company navigated temporary shutdowns at its manufacturing facility and aimed to stabilize finances while continuing product development and sales expansion in the lidar technology sector.

Swing Education, a K-12 education staffing platform, laid off approximately 40 employees in early 2024, representing about 20% of its workforce. The company, which operates in the edtech industry, cited a need to restructure and streamline operations to ensure long-term sustainability amid challenging market conditions. This reduction impacted teams across the organization as Swing Education adjusted its strategy to focus on core business areas.

Akerna on 2020-09-02.

Awok representing approximately 100% of its workforce on 2020-09-02.

Big Fish Games laid off 250 employees on 2020-09-01.

In early September, GoBear, a Singapore-based online financial services platform, laid off 22 employees, representing 11% of its workforce. The cuts impacted staff across operations, product, and technology teams in its Singapore, Vietnam, Philippines, and Ukraine offices. Following the restructuring, the company is shifting its focus to growth areas like digital lending and insurance brokerage services.

MakeMyTrip laid off 350 employees representing approximately 10% of its workforce on 2020-08-31.

Salesforce laid off 1,000 employees representing approximately 2% of its workforce on 2020-08-26.

kununu, an employer review platform and subsidiary of the German recruiting giant XING, discontinued its U.S. operations and closed its Boston office in 2020. This strategic decision to exit the American market resulted in the layoff of the entire local team. While the exact number of employees affected was not publicly detailed in the post, the heartfelt farewells from the departing U.S. lead, Dan Sirk, indicate the closure impacted the dedicated commercial and product teams responsible for the platform's stateside growth. The move reflects the competitive challenges in the U.S. HR tech industry and a refocusing of kununu's efforts on its core European markets.

In August 2020, Australian networking and internet service provider Superloop laid off 30 employees as part of cost-cutting measures driven by the COVID-19 pandemic. This reduction, which decreased permanent headcount costs by 10.7%, was a response to significant revenue declines in its student accommodation and hospitality-focused internet services due to nationwide lockdowns. The layoffs followed a temporary four-day workweek implemented in April. For the financial year ending June 2020, Superloop's revenue fell 9.11% to $106.6 million, though it reduced its net loss from $72 million to $41 million through operational cuts and reduced capital expenditure. The company, which operates in the telecommunications and managed services industry, subsequently restructured and shifted focus toward sales and monetizing its network infrastructure.

Spaces on 2020-08-24.

StreamSets on 2020-08-20.