Layoff Events

Glitch, a coding platform and tech startup, laid off a substantial number of employees on May 22, 2020, to cut operating costs and ensure long-term viability. According to sources, at least 18 people were let go from a workforce of about 50, representing around a third of its staff. CEO Anil Dash cited the challenges of being a small company in a fiercely competitive space during a tough economy. The layoffs followed the recent launch of a subscription service, which had a slow start, as the company sought to stabilize its finances amid the pandemic's market conditions.

Cvent laid off 400 employees representing approximately 10% of its workforce on 2020-05-21.

Paris-based ride-hailing company Kapten, owned by Free Now Group, has laid off at least 68 employees, primarily from its Engineering and Product teams, as part of a broader restructuring. The layoffs, which occurred around May, stem from the company's decision to halt additional investments in its Paris Tech hub. While initial estimates suggested between 130 to 180 employees could be affected, the confirmed number so far is 68. The process unfolded over several months due to local labor law regulations, reflecting challenges in the competitive ride-hailing industry.

In May 2020, Chennai-based online travel startup PickYourTrail announced a strategic business realignment in response to the COVID-19 pandemic's severe impact on international travel. While the article does not specify exact layoff numbers, the context implies workforce adjustments as the company pivoted to survive. Historically focused solely on curated international vacation experiences since its 2014 founding, the startup shifted to enter the competitive domestic travel market, targeting a mid-June launch to align with India's resumption of domestic flights. This move, driven by necessity to ensure survival amid stalled global tourism, involved reorienting its business model and supply chains to cater to local travelers seeking closer-to-home experiences, marking a significant operational change for the small to mid-scale travel tech company.

ShareChat, a Bengaluru-based regional social media startup backed by Twitter, laid off 101 employees on May 20, 2020, representing about 25% of its workforce. The company cited an unpredictable advertising market severely impacted by the COVID-19 pandemic as the primary reason. Having only begun monetizing through ads in October 2019, ShareChat stated it needed to refocus on its core product and fundamental growth levers to sustain the business. The affected employees were offered support, including a "garden leave" option and professional resume-building assistance.

In May, Intercom, a San Francisco-based customer messaging software company, laid off 39 employees, representing 6% of its workforce. The company cited restructuring efforts as it also relocated 47 roles in marketing and R&D from San Francisco to Dublin. Affecting multiple departments, including engineering, this move reflects broader adjustments within the tech industry. Intercom has since launched a Talent Directory to assist the impacted employees in finding new opportunities.

In May 2020, Indian ride-hailing firm Ola laid off 1,400 employees, representing 35% of its workforce in India, as the company grappled with the severe impact of the COVID-19 pandemic. The layoffs, announced by CEO Bhavish Aggarwal, were a response to a dramatic 95% drop in revenue over two months following a nationwide lockdown that halted mobility services. The job cuts were confined to the mobility and food operations teams within India, while Ola Electric remained unaffected. Aggarwal cited the prolonged and uncertain crisis, noting that the shift in consumer behavior, including increased remote work and reduced travel, would have a long-term impact on the business. Affected employees received three months of salary and extended benefits.

Stay Alfred laid off 221 employees representing approximately 100% of its workforce on 2020-05-20.

Personal finance fintech SoFi has laid off approximately 112 employees, representing about 7% of its 1,600-person workforce. The cuts followed a more rigorous round of quarterly performance reviews, influenced by current market conditions, and also included the elimination of a collections team due to automation. This restructuring occurs just over a month after SoFi announced a major $1.2 billion acquisition of payments startup Galileo. The layoffs were not confined to specific teams but occurred across the organization, reflecting efforts to address inefficiencies amid broader strategic moves in the fintech industry.

Samsara, a San Francisco-based company specializing in internet-connected sensors for industrial operations, laid off 300 employees yesterday, representing 18% of its workforce across all departments. The layoffs are attributed to the economic downturn, with the company also raising $400 million at a reduced valuation of $5.4 billion, down from $6.3 billion in September. To further cut costs, Samsara is reducing executive salaries by 30% for the remainder of the year, limiting non-essential spending, and implementing a six-month hiring freeze. In a supportive move, the company has established a talent directory to assist affected employees in finding new opportunities.

Livspace, a home interior and renovation platform, laid off approximately 100 employees, which represents about 2% of its workforce. The decision, made in early 2024, is part of a restructuring effort to improve profitability and operational efficiency amid a broader market correction in the tech and startup sector. Operating in the proptech and home services industry, the company aims to streamline its operations to achieve sustainable growth.

Dotscience, a London-based startup that developed DevOps tools for machine learning, has shut down entirely this week after running out of funds and failing to secure additional financing. The closure resulted in all 10+ employees being laid off, representing 100% of its workforce, including seven engineers. Operating in the AI/ML infrastructure industry as a small-scale startup, the company ceased operations in late 2023, highlighting the challenging funding environment for early-stage tech firms.

In May 2020, the U.K.-based experience marketplace Pollen laid off 69 employees across North America, representing approximately 31% of its then 216-person workforce. An additional 34 staff in the U.K. were placed on furlough. The layoffs were a direct result of the severe impact the COVID-19 pandemic had on the travel and events industry, which forced countries into lockdown and triggered a recession. Despite having raised $60 million in funding just months prior in October 2019, the startup was forced to make significant cuts to its operations.

WeWork India, the Indian subsidiary of the US-headquartered co-working giant, laid off approximately 20% of its workforce in May 2020, affecting around 100 employees out of a total of 500. This decision was driven by the severe impact of the COVID-19 pandemic on business and revenues, which exacerbated existing financial stress. CEO Karan Virwani stated the layoffs were a tough but necessary step to streamline operations, reduce costs, and build a sustainable structure focused on core business priorities. The company, operating 34 centers in India, aimed to become profitable by early 2021 by realigning teams and adopting a more member-centric approach amid the global crisis.

Intapp, a technology provider serving the legal industry, has laid off over 45 employees, representing approximately 5% of its workforce, in response to market challenges exacerbated by the Covid-19 pandemic. The layoffs, confirmed by company leadership, affected staff across multiple U.S. and London offices as the legal sector faces significant economic pressures. This cost-cutting move follows a period of acquisition activity by Intapp in 2018-2019, highlighting the shifting dynamics within the legal tech industry during the outbreak.

Uber has laid off an additional 3,000 employees, representing 13% of its workforce, as part of a broader restructuring announced in May 2020. This follows a previous round of 3,700 layoffs, bringing the total to 6,700 employees, or 25% of its staff. The drastic cuts are a direct response to the COVID-19 pandemic, which caused an approximate 80% decline in its core ride-sharing business. Despite growth in food delivery, it was insufficient to offset losses. Concurrently, Uber is closing 45 offices, winding down its product incubator and AI labs, and reassessing non-core units like Uber Works and its self-driving division. The layoffs span all departments and include staff from subsidiaries Careem and Jump.

Swiggy laid off 1,100 employees representing approximately 14% of its workforce on 2020-05-18.

Agoda, the Asian hotel booking platform and subsidiary of Booking Holdings, laid off 1,500 employees last week, representing 25% of its workforce across approximately 30 countries. The cuts impacted nearly all departments, with the majority occurring in the Customer Experience Group, alongside product, IT, finance, partner services, marketing, and its Rocketmiles division. Despite signs of recovery in some Asian nations, the company cited the deep and prolonged impact of COVID-19 on the global travel industry as the primary reason. This follows recent layoffs and furloughs at other Booking Holdings brands like Kayak and OpenTable. Agoda has established a talent directory to assist the departing employees, many of whom are based in Southeast Asia.

Israeli cybersecurity unicorn Checkmarx is laying off dozens of its approximately 700 global employees as part of a restructuring following its recent $1.15 billion acquisition by private equity firm Hellman & Friedman. The layoffs, confirmed in May 2020, come just a month after the major exit and are attributed to the company's reorganization plans, which were delayed by the acquisition process and the COVID-19 pandemic. Operating in the application security industry, the company stated the changes are aimed at building a long-term, efficient model despite the broader economic shock, emphasizing that the shift to digital solutions presents future growth opportunities for its security business.

In May 2020, storage software startup Datera conducted a reorganization, laying off 10-15% of its workforce as part of cost-cutting measures to reduce cash burn and achieve cash flow positivity by the end of the fiscal year. This decision was driven by the economic impact of the COVID-19 pandemic on the storage market. The company, which had recently completed a funding round, also implemented salary reductions, with the CEO taking an 80% pay cut. Datera, an enterprise storage software provider, had experienced significant growth prior to the layoffs, including 325% revenue growth in 2019.

Rubrik laid off 57 employees on 2020-05-18.

In May 2020, the online real estate platform Magicbricks laid off approximately 250 employees as part of broader cost-cutting measures. The layoffs, which affected various business roles, occurred amid the economic downturn caused by the COVID-19 pandemic and subsequent lockdowns, which severely impacted demand across sectors. The company, owned by Times Internet, reportedly asked some employees to resign without severance pay while serving a notice period. This move was part of a wider trend of downsizing and operational streamlining observed among Indian startups and unicorns, particularly in travel, hospitality, and real estate, as companies sought to conserve cash during the crisis.

Uber laid off 3,000 employees in a recent round of cuts, which were inspired by the COVID-19 pandemic.

Fintech startup Lendingkart has laid off over half of its workforce, affecting more than 250 employees out of a total of around 500, with immediate effect across its offices in Ahmedabad and Bangalore. The drastic cuts come as the company, an NBFC focused on lending to small and medium enterprises, faces severe pressure from the COVID-19 pandemic and India's economic slowdown. Despite the CEO recently highlighting digital lending as an opportunity during the crisis, the core MSE sector it serves has been brutally hit by the lockdown, compromising demand and likely straining liquidity. Employees reported being asked to resign voluntarily with vague compensation terms, without a clear official announcement from the company.

Masse representing approximately 100% of its workforce on 2020-05-15.

In mid-May, Zomato, an India-based restaurant guide and food delivery startup, laid off 520 employees, which represents about 13% of its workforce. This significant reduction was a direct response to huge declines in food delivery activity. The company also implemented temporary pay cuts for remaining staff starting in June. To support those affected, Zomato created an official talent directory to help ex-employees connect with new opportunities, a move echoed by other major startups.

TicketSwap representing approximately 30% of its workforce on 2020-05-14.

Quartz laid off 80 employees representing approximately 40% of its workforce on 2020-05-14.

Integral Ad Science laid off 70 employees representing approximately 10% of its workforce on 2020-05-14.

Veem laid off 30 employees on 2020-05-14.

Ridecell, an operations platform serving ride-sharing companies, laid off 35 employees last Thursday, representing 15% of its workforce. The layoffs are attributed to the struggles of its customers during nationwide lockdowns amid the coronavirus pandemic, which has severely impacted the transportation industry. This move places Ridecell among other transportation startups like Uber, Lyft, Zum, and HopSkipDrive that have also conducted significant layoffs recently. The affected employees include 16 engineers based in the Bay Area, highlighting the broader economic challenges faced by tech firms in the sector during this time.

Cruise, the autonomous vehicle subsidiary of General Motors, laid off approximately 150 employees, representing about 8 percent of its workforce, in May 2020. The job cuts, which affected recruiting, product, design, and business strategy roles, were implemented to reduce costs during the COVID-19 pandemic. Despite having significant funding and a high valuation, the company chose to streamline operations and focus more intensively on its engineering efforts, reflecting broader challenges and workforce reductions within the self-driving car industry at the time.

Mode Analytics, a business intelligence and data analytics platform, laid off 17 employees across multiple departments including Sales, Engineering, and Product. The layoffs, announced by CEO Derek Steer in a LinkedIn post, represent a workforce reduction affecting teams company-wide. While the exact percentage and total employee count were not disclosed in the announcement, the decision was described as difficult, with the company expressing gratitude for the contributions of the departing staff. The primary focus following the layoffs was on supporting the affected employees by compiling a list to assist them in finding new opportunities within the industry.

Kickstarter, the crowdfunding platform, significantly reduced its workforce in May 2020, cutting nearly 40 percent of its staff. This reduction included 25 layoffs, representing about 18 percent of employees, plus an additional 30 employees who accepted voluntary buyout packages. The company cited the economic downturn caused by the COVID-19 pandemic, noting a 35 percent drop in new projects on its platform with no immediate recovery in sight. As a public benefit corporation in the tech and crowdfunding industry, Kickstarter implemented these measures to navigate the financial challenges of the time.

In May 2020, the Silicon Valley delivery startup Deliv laid off 669 employees, primarily affecting 591 drivers from its subsidiary Deliv California, as the company announced it would wind down operations over the next 90 days. This represented a significant portion of its workforce, which had grown to serve 1,400 cities. The layoffs followed the company's shift to an employee-based model in California in response to the state's AB 5 gig economy law, which reclassified independent contractors as employees. Despite earlier confidence that this change wouldn't harm its business, Deliv cited a "confluence of events" leading to its decline, ending its innovative same-day delivery service that partnered with brick-and-mortar retailers.

Mercos, a Brazilian technology company, has laid off 51 employees, representing 40% of its workforce, in March 2020 due to the severe economic impact of the COVID-19 pandemic. The layoffs reduced the team from approximately 125 total employees to 74. The company, which had achieved break-even and strong growth in 2019, faced an abrupt downturn as the global health crisis unfolded, leading to this difficult decision to ensure financial stability. This event marked a significant challenge for the firm, which highly values its company culture.

Intersect, a Toronto-based custom software development firm and subsidiary of CoreLogic, laid off 19 employees, representing about 11% of its 160-person workforce. The layoffs were announced via LinkedIn by then-CEO Paul Crowe in late 2020, shortly before he stepped down from his role after nine years with the company. While the exact reason for the staff reduction was not officially confirmed, it occurred during the COVID-19 pandemic, a period of widespread economic uncertainty. The company, which serves clients like American Express and TD Bank, saw its leadership transition to internal executives following Crowe's departure.

Vietnamese fitness startup WeFit, operated by parent company WeWow, has filed for bankruptcy and ceased all services as of May 2020. The company, which had previously raised $1 million in funding, was forced to shut down after completely depleting its working capital due to the severe financial impact of the COVID-19 pandemic. Before the crisis, WeFit's platform was processing around 150,000 monthly bookings, but the downturn ultimately left the business unsustainable.

Stone laid off 1,300 employees representing approximately 20% of its workforce on 2020-05-12.

Hireology laid off 36 employees representing approximately 17% of its workforce on 2020-05-12.

Datto on 2020-05-12.

Mixpanel laid off 65 employees representing approximately 19% of its workforce on 2020-05-12.

Canadian EdTech company Top Hat has laid off 16 employees, representing 3% of its total workforce, as part of an internal restructuring to adapt to changes in the higher education sector accelerated by the COVID-19 pandemic. The layoffs, which occurred in the revenue team, follow a $72 million Series D funding round three months prior. CEO Mike Silagadze explained that the shift is not a cost-cutting measure but a strategic pivot, as the pandemic disrupted traditional sales outreach to university professors—their core customers. With professors harder to reach, Top Hat is reallocating resources toward digital content and enterprise institutional sales, moving 28 employees to these areas. The company emphasizes that this restructuring reflects an evolved go-to-market strategy to ensure long-term success in a transformed educational landscape.

Petal, a New York City-based fintech company that provides credit cards to individuals without established credit scores, laid off at least 10 employees last week. The layoffs impacted various departments, though the exact total number affected remains unclear. While the company's overall employee count is not specified, this reduction reflects broader challenges in the fintech sector, where many startups are streamlining operations amid economic pressures. The event underscores the ongoing adjustments within the tech industry as companies navigate uncertain market conditions.

Airbnb-backed corporate housing startup Zeus Living laid off 73 employees, representing nearly half of its remaining workforce, as announced by CEO Kulveer Taggar in a blog post on Tuesday, May 12, 2020. This drastic cut follows a previous round of layoffs in late March, where about 80 employees, or one-third of the staff, were let go. The company, which provides furnished long-term rentals primarily for business travelers in six U.S. metro areas, is facing severe challenges due to the coronavirus pandemic, which has halted travel and slashed its 2020 revenue projections to just 55% of original expectations. With a total employee count now significantly reduced, Zeus is also scaling back its property portfolio and has decided to return its PPP loan. The startup, backed by investors including Airbnb, recently raised $15 million at a reduced valuation, reflecting the tough market conditions in the travel and hospitality industry.

Cadre, an online marketplace for commercial real estate investments, laid off 28 employees last week, representing 25% of its workforce. The cuts affected all departments, including sales, product, engineering, people, and finance. This downsizing is a direct result of the sudden slowdown in the real estate market, which has impacted the company's revenue from transaction fees. To support those affected, Cadre is offering health insurance through the end of 2020 and extending the post-termination exercise period for vested stock options to two years.

Revolut laid off 60 employees representing approximately 3% of its workforce on 2020-05-11.

In May 2020, German fintech challenger bank N26 laid off nine employees from its New York office, representing 10% of its 90-person U.S. team. This marked the first time the rapidly growing Berlin-based startup had to conduct operational layoffs. The cuts were part of broader cost-saving measures due to the COVID-19 pandemic, which had already led to furloughs for 150 staff in Europe. Unlike in Europe, the lack of comparable state support in the U.S. prompted the company to consolidate roles, primarily in recruiting. Following the layoffs, the New York office retained about 80 employees, with some functions shifting to Berlin. N26, which had over 1,000 employees globally at the time, offered affected U.S. staff severance and extended health benefits above the national average.

Indonesian hotel aggregator startup Airy Rooms is permanently shutting down by the end of May 2020 due to the severe impact of the COVID-19 pandemic on the hospitality industry. The company, which was established in 2015 and operated as a startup in the travel and accommodation sector, managed around 2,000 properties with over 30,000 rooms. While the exact number of employees affected is not specified, the closure implies a full layoff of its workforce, as the entire company is ceasing operations. This shutdown reflects the broader challenges faced by travel-related businesses during the global health crisis.

Flywire laid off 60 employees representing approximately 12% of its workforce on 2020-05-07.