Layoff Events

Lime, the scooter rental startup, laid off 80 employees last week, representing 13% of its workforce. The company cited the need to pause operations in nearly all of its global markets to comply with social distancing measures during the coronavirus pandemic. This follows a previous round of layoffs in January, when Lime cut 100 workers and exited 12 markets. The latest reductions impact all departments as the company adjusts to the widespread operational halt.

South African fintech startup Yoco is laying off an impactful number of employees to ensure sustainability during the COVID-19 pandemic, as thousands of its clients face over 90% revenue losses. While the exact number of layoffs and total workforce aren't specified, the company's management has taken salary cuts and is conducting substantial retrenchments, prioritizing the retention of its technical, maker, and product teams. Co-founder and CTO Lungisa Matshoba described the decision as a prudent, structured, and generous move taken early to maintain flexibility and uphold company principles, despite the difficulty of parting with talented team members. The layoffs aim to focus energy on supporting struggling customers and securing the startup's future in the fintech industry.

TripAdvisor, an online travel company, laid off 900 employees, which represents approximately 25% of its workforce. This significant reduction occurred as the company decided to close its San Francisco and downtown Boston offices. The layoffs are part of a broader trend in the travel industry, which has been heavily impacted by the COVID-19 pandemic and related shelter-in-place orders. TripAdvisor joins other travel companies like Sonder, TripActions, TravelTriangle, and Fareportal in implementing workforce cuts during this challenging period.

PayJoy, a San Francisco-based lending startup that helps customers without bank accounts or credit histories purchase smartphones on installment plans, laid off 23 employees, representing 25% of its workforce, on April 28. The company, which has raised $71 million in funding, cited the economic uncertainty caused by the COVID-19 pandemic as the reason, expecting a significant impact on revenue and fundraising despite a strong first quarter. The layoffs, affecting all departments including engineering, were intended to extend the company's financial buffer, with affected employees' last day set for June 30.

Migo representing approximately 25% of its workforce on 2020-04-28.

App Annie, a mobile analytics company, has laid off an unspecified number of employees, estimated by an external source to be around 18% of its workforce, as part of a restructuring effort to ensure self-sufficiency amid the economic challenges posed by the COVID-19 pandemic. The company described the layoffs as affecting a "small fraction" of its staff, attributing the difficult decision to the unprecedented global outbreak and the need to maintain efficiency in the current macroeconomic climate.

Desktop Metal on 2020-04-28.

Shipsi laid off 20 employees representing approximately 50% of its workforce on 2020-04-28.

In late April, London-based food delivery startup Deliveroo laid off 367 employees, representing 15% of its workforce. The cuts impacted multiple departments across its global operations, including offices in London, Dubai, and Taipei. While the company did not specify detailed reasons, the layoffs are widely seen as a response to the broader challenges in the food delivery sector, including persistent unprofitability and the economic pressures from the pandemic on restaurants. Deliveroo, which operates in 13 markets, has since promoted a talent directory to help affected employees find new opportunities.

On March 28, 2020, Nigerian fintech and microfinance bank Renmoney laid off 391 direct sales agents, representing half of its staff. This significant workforce reduction was a strategic response to the economic challenges and lockdowns of the COVID-19 pandemic, which halted field sales operations. The CEO cited a strategic change in business conduct, moving away from an in-person sales model. This move was part of a broader trend among African tech startups, including salary cuts and furloughs, to conserve cash and ensure survival during the anticipated recession stretching into early 2021.

In April 2020, digital advertising company OpenX laid off or furloughed 15% of its workforce, primarily through layoffs, in response to the COVID-19 pandemic's expected long-term reduction in marketer spend. The cuts, which also included reduced hours for a small number of employees and 15-20% salary reductions for the leadership team, brought the company's total headcount to just over 200 employees. This represents a significant decline from previous years, as OpenX had already reduced staff in late 2018. The company is realigning its focus toward the demand side of its business, streamlining operations to weather the downturn while continuing to invest in its products for publishers and marketers.

In April 2020, amid the COVID-19 pandemic, robotic process automation (RPA) startup Automation Anywhere laid off approximately 10% of its workforce, affecting hundreds of employees. The company, which provides software to automate repetitive tasks, cited a sharp decline in demand for its traditional on-premise products as customers accelerated their shift toward cloud and hybrid cloud solutions due to the remote work transition. This restructuring aimed to reallocate resources toward these growing market areas. Despite earlier reports of increased product interest during the outbreak, the economic uncertainty led the well-funded startup to reduce headcount as part of broader cost-cutting measures.

JetClosing laid off 20 employees representing approximately 20% of its workforce on 2020-04-27.

OYO laid off 500 employees on 2020-04-25.

Stoqo laid off 250 employees representing approximately 100% of its workforce on 2020-04-25.

In late April, Submittable, a Missoula-based company providing online application management software primarily for universities and other organizations, laid off 30 employees, representing 20% of its workforce. The layoffs affected all departments and were driven by the significant impact of COVID-19, as many of its 2,000 university clients halted operations. The CEO stated that acting sooner allowed the company to provide better severance, with affected employees receiving one to two months of pay. This move reflects the broader challenges faced by tech startups serving the education sector during the pandemic.

Horizn Studios, a Berlin-based smart luggage startup, announced on April 24, 2020, that it is entering a self-administered restructuring process due to severe financial pressure from the COVID-19 pandemic, which caused its revenue to drop by over 50%. As part of this effort, the company is laying off 25% of its approximately 60 employees, affecting about 15 people. The startup, which had raised around €25 million in funding, aims to secure new financing within three months to survive the crisis and eventually rebuild its brand.

Welkin Health, a San Francisco-based healthcare software startup backed by Josh Kushner's Thrive Capital, laid off 10 employees, about one-third of its roughly 30-person workforce, on April 24, 2020, citing a sales decline due to the COVID-19 pandemic. Just three days later, the company was approved for at least $1 million in Paycheck Protection Program (PPP) loans, which are intended to help small businesses retain staff. This timing raised concerns about the program's integrity, as the layoffs reduced the company to about 20 employees, despite reporting 30 to the SBA. The move contradicted advice from its investor and may risk loan forgiveness, highlighting tensions between startup funding and federal aid meant for vulnerable small businesses.

Lighter Capital laid off 18 employees representing approximately 22% of its workforce on 2020-04-24.

UPshow, a Chicago-based digital signage company in the tech industry, laid off an unspecified number of employees in April 2020 as part of broader workforce reductions impacting the local tech sector due to the economic challenges of the COVID-19 pandemic. The layoffs were reported amid a period of significant uncertainty, reflecting the pandemic's disruptive effect on businesses, though exact figures regarding the scale of the layoffs and the company's total workforce at the time were not detailed in the coverage.

In April 2020, amid the widespread economic disruption caused by the COVID-19 pandemic, Los Angeles-based manufacturing startup Divergent 3D laid off approximately 57 employees, representing about one-third of its then 160-person workforce. Founder and CEO Kevin Czinger confirmed the staff reductions were a difficult but necessary step to ensure the company's long-term financial stability and protect its core technology development and customer programs. Operating as an innovative Tier 1 supplier for the automotive and aerospace industries, Divergent 3D developed an additive manufacturing platform aimed at making vehicle production more efficient and less environmentally impactful. The layoffs were a direct response to the enormous uncertainty surrounding the pandemic's duration and economic impact, as the company sought to become as resilient as possible.

Ada Support, a Canadian AI chatbot platform for customer service, has laid off 36 full-time employees, representing 23% of its 156-person workforce, along with five co-op students whose contracts were canceled. The company-wide cuts, announced in April 2020, were driven by the economic uncertainty of the COVID-19 pandemic, which slowed new software purchases despite increased customer reliance on Ada's technology. This reduction came just over a month after the startup secured a $63.7 million CAD Series B funding round, aimed at scaling its platform. Ada, operating in the competitive tech and AI industry, cited the need to reevaluate operational expenses and noted it did not qualify for federal wage subsidies due to its continued growth.

In April 2020, GoCardless, a UK-based fintech company specializing in recurring payments, announced cost-cutting measures including layoffs in response to the COVID-19 pandemic's economic impact. The company cited a 10% decline in April processing volumes, particularly from health & fitness, membership organizations, and small businesses, despite strong new business bookings. To ensure long-term viability amid projected revenue drops and a challenging macroeconomic environment, GoCardless reduced its workforce, though the exact number of layoffs and percentage were not publicly detailed in this announcement. The move aimed to preserve cash and steer the loss-making startup toward profitability during the global crisis.

Cheddar, the live-streaming news and entertainment outlet owned by Altice USA, has permanently closed its Los Angeles studio and conducted company-wide layoffs, confirmed on a recent Friday. The layoffs, part of a consolidation merging its two networks—Cheddar and Cheddar News—into one, affected an undisclosed number of employees, including West Coast anchor Alyssa Julya Smith. While the exact figures for total employees and percentage laid off are not specified, the move reflects a strategic shift to streamline operations in the competitive digital media industry, focusing on delivering business and cultural news from its New York base. Affected staff are receiving severance and benefits.

TutorMundi laid off 4 employees representing approximately 100% of its workforce on 2020-04-24.

Convoy representing approximately 1% of its workforce on 2020-04-23.

Sisense, an Israel-based business analytics software unicorn, laid off 80 employees, representing 9% of its global workforce of 900, with 20 of those cuts occurring at its Israeli headquarters. The layoffs, announced in late April 2020, primarily affected sales and marketing teams and were implemented as a strategic adjustment to anticipated economic slowdowns and lower growth due to the COVID-19 pandemic. Despite recent rapid expansion, including hiring 100 new employees, the company cited the need to balance expenditures with income forecasts. Operating in the business intelligence and data analytics industry, Sisense had achieved a valuation of $1.1 billion earlier in the year and reported estimated 2019 earnings of approximately $100 million.

In April 2020, HR tech startup Zenefits laid off approximately 15% of its workforce, affecting an estimated 80-100 employees out of a total of around 578. The company, which provides HR and payroll software for small and medium businesses, cited the severe economic impact of the COVID-19 pandemic as the reason for the cuts. CEO Jay Fulcher explained that the crisis forced a re-evaluation and realignment of the business plan, leading to this difficult decision. This move reflected broader job losses across Silicon Valley as the pandemic disrupted businesses globally.

Oscar Health laid off 70 employees representing approximately 5% of its workforce on 2020-04-23.

StockX, the prominent online resale marketplace for sneakers and streetwear, laid off approximately 12% of its workforce in late April 2020, affecting 100 to 150 employees. This reduction came as the company, which had around 800 employees, faced plummeting demand due to the COVID-19 pandemic's economic impact. CEO Scott Cutler cited the need to cut costs and achieve profitability, aligning with broader efforts to prepare for a potential future IPO. The layoffs impacted teams in quality assurance, engineering, product, and operations across its Detroit headquarters and Arizona office, reflecting a significant restructuring during a period of global economic uncertainty.

Airy Rooms, a hospitality startup, recently conducted layoffs affecting an unspecified number of employees. The exact scale of the workforce reduction, including the total number of employees and the percentage impacted, was not disclosed in the available information. The layoffs are part of broader restructuring efforts within the company, which operates in the competitive travel and accommodation industry. While the specific date of the layoffs is not provided, such moves are common among startups adjusting to market conditions and operational challenges.

Clearbit, a San Francisco-based marketing data enrichment company, laid off at least 12 employees across all departments last week. While the exact percentage of its workforce affected is not specified, the layoffs included several engineers based in San Francisco. The move reflects ongoing adjustments within the tech and marketing industries, as companies streamline operations amid broader economic pressures.

Ike laid off 10 employees representing approximately 14% of its workforce on 2020-04-22.

ExtraHop on 2020-04-22.

When I Work laid off 55 employees representing approximately 35% of its workforce on 2020-04-22.

Magic Leap, a prominent augmented reality startup, laid off 1,000 employees last week, representing 50% of its total workforce. The cuts affected all departments, including over 100 engineers primarily based in Florida. This significant reduction is part of a broader trend of large-scale layoffs across the tech industry amid the economic challenges posed by the COVID-19 pandemic.

Nearmap, an Australian aerial mapping technology company, implemented cost-saving measures in April 2020 to achieve positive cash flow by June, despite being deemed an essential service during the pandemic. These initiatives included executive pay cuts, a temporary 20% reduction in employee salaries, deferred bonuses, and redundancies affecting approximately 10% of its workforce. While the exact number of layoffs wasn't specified, the 10% reduction was part of a broader strategy to neutralize cash burn as the new fiscal year began. The company focused on maintaining its resilient cloud-based subscription model, delaying new camera systems, and continuing sales efforts in key sectors like insurance and government.

Lambda School, an online coding bootcamp, laid off 19 employees in April 2020 due to market uncertainty from the COVID-19 pandemic, which impacted hiring and the financial markets crucial to its income-share agreement model. The layoffs also stemmed from a strategic shift to prioritize quality and student experience over aggressive growth goals for the year. Additionally, the eight-member executive team, including CEO Austen Allred, took a 15% pay cut. The company, backed by Y Combinator and launched in 2017, faced prior controversies over its educational model and regulatory compliance. The exact proportion of staff affected was not disclosed, but the move reflects broader challenges in the edtech and startup sectors during the economic downturn.

Toronto-based cloud-accounting software company FreshBooks has laid off 38 employees, representing 9% of its workforce, as announced by CEO Mike McDerment in a LinkedIn post. The layoffs, attributed to the economic realities induced by the COVID-19 pandemic, were made across various departments to ensure long-term financial responsibility and control over the company's destiny. Despite the reduction, FreshBooks remains in a growth and expansion mode, with plans to continue hiring in key areas and expanding its European office in Amsterdam. The executive leadership team has also volunteered to reduce their compensation by about one-third during this period. The company, which recently secured significant investment, aims to position itself independently from capital markets while navigating the current challenges.

Bringg, a Tel Aviv-based on-demand delivery management software company, has laid off approximately 10% of its workforce in Israel, affecting 10-15 employees out of its 110-person team there. This decision, communicated via a Zoom meeting on Holocaust Remembrance Day (April 21, 2020), marks a reversal from CEO Guy Bloch's earlier statement that the company was "shifting up a gear" while others cut back. The layoffs are part of the broader economic impact of the COVID-19 pandemic, though the company has not officially confirmed the reason. Founded in 2013 and serving major clients like Coca-Cola and Walmart, Bringg employs around 130 people globally and recently raised $30 million in Series D funding.

Swiggy, the Indian online food delivery startup, is laying off approximately 800-900 employees, primarily from its cloud kitchen division, as part of a cost-cutting plan approved by its board in April 2020. This represents a significant reduction, though the exact percentage relative to its total workforce at the time is not specified. The layoffs are a direct response to the severe economic impact of the Covid-19 pandemic, which forced the company to shut down around half of its cloud kitchens and renegotiate rents. The Bengaluru-based unicorn, operating in the food delivery and consumer internet industry, cited the need to stay nimble and focus on profitability during the extended lockdown. While some layoffs were based on performance reviews, the broader context is a wave of job cuts across startups aiming to preserve cash during the crisis.

Casper laid off 78 employees representing approximately 21% of its workforce on 2020-04-21.

In April 2020, creative platform Patreon laid off 30 employees, representing 13% of its workforce, as part of a restructuring to navigate economic uncertainty during the COVID-19 pandemic. Despite reporting an uptick in new creators and increased patron support in March, the company cited the need to ensure long-term sustainability. Patreon, a startup in the creator economy, noted that while its financial position was strong, the decision aimed to prepare for prolonged market challenges.

Protocol, the tech-focused news site launched by Politico's parent company, laid off 13 employees on April 21, 2020, just 11 weeks after its debut. The layoffs affected both editorial and business teams, reducing the staff from 35 to 22, a cut of about 37%. Leadership cited the profound economic impact of the COVID-19 pandemic as the reason, forcing a rapid adjustment despite confidence in the long-term mission. This move highlights the severe financial pressures the coronavirus placed on media companies, even newly launched ventures in the tech journalism industry backed by established players.

RealSelf laid off 40 employees representing approximately 13% of its workforce on 2020-04-21.

LendingClub, a major U.S. online personal loan provider, announced layoffs of 460 employees, representing about 30% of its workforce. The cuts, disclosed in a regulatory filing, are a response to the COVID-19 pandemic's severe impact on consumer and small business demand for loans. CEO Scott Sanborn cited the need to realign staffing with the current economic environment, with executives taking salary reductions as part of the cost-saving measures. The fintech company, which had a prominent tech IPO in 2014, is among several online lenders facing challenges due to the economic slowdown.

In April 2020, Houzz, a $4 billion-valued online platform for home renovation and design, laid off 155 employees, representing about 10% of its workforce. The company also implemented executive salary cuts. This decision was driven by the severe impact of the COVID-19 pandemic on its core business of pro subscriptions, as home remodeling professionals faced widespread project delays and cancellations due to social distancing measures. The layoffs followed a previous restructuring in March 2020, when Houzz let go of 10 employees and discontinued its in-house furniture line. The company, operating in the home services and e-commerce industry, cited the need to align strategic investments with the challenging economic environment affecting small businesses in its sector.

Indian digital payments giant Paytm is laying off approximately 500 to 700 employees, representing about 5% to 10% of its workforce, following its annual performance review cycle. The company cited that these employees were identified as underperformers based on its performance metrics. In light of the current economic climate, Paytm will retain these employees on its payroll for an additional two months to support their transition and ensure they receive all due payments. Concurrently, the fintech unicorn plans to hire over 500 new staff for roles in financial services, product, and technology, and has allocated ₹250 crore for employee stock option plans to reward high performers and new hires.

Klook, a SoftBank-backed travel activities booking platform, laid off at least 83 employees, primarily from its Customer Experience and Business Development departments, as indicated by a recently launched talent directory. This follows a larger round in April 2020, when over 300 employees were laid off or furloughed after the company's revenue plummeted by up to 90% due to the global travel halt. While it's unclear if this directory represents a new round or the earlier one, the company cited having to part with great people. Klook has since seen a rebound by focusing on staycation demand.

Kueski, a Mexican fintech company specializing in online microloans, laid off approximately 90 employees, representing 30% of its workforce, as a direct measure to mitigate economic risks caused by the COVID-19 pandemic. The company, which had around 220 employees as of 2019, stated that this difficult decision was necessary to sustain operations and continue offering financial solutions. This layoff reflects broader challenges in the online lending sector during the pandemic, where economic disruptions increased risks of borrower defaults. Founded in 2012 and based in Guadalajara, Kueski is recognized as a pioneer in Mexico's fintech industry and was listed among LinkedIn's Top Startups in 2019.