Layoff Events

In April 2020, amid the early stages of the COVID-19 pandemic, the San Francisco-based outdoor travel startup Hipcamp conducted a significant round of layoffs due to a sharp drop in bookings as shelter-in-place orders took effect. According to a report from an employee, approximately 60% of the company's workforce was let go over a two-week period, though Hipcamp disputed that specific percentage, stating the actual figure was significantly lower. The layoffs were a direct response to the economic uncertainties and travel restrictions that crippled the industry. By August 2020, however, the company had rebounded as outdoor activities gained popularity, even rehiring some previously laid-off employees and expanding through the acquisition of the Australian startup Youcamp.

Movidesk, a Blumenau-based technology scale-up providing a help desk platform, laid off 33 employees in April 2020, representing approximately 25% of its then 134-person workforce. The layoffs were a direct result of the economic crisis triggered by the COVID-19 pandemic, which caused a significant and immediate drop in new sales, contract cancellations, reductions, and increased client payment defaults. Despite rapid growth and recent venture capital funding, the company stated that payroll consumed nearly all revenue, making the staff reduction necessary after other cost-cutting measures proved insufficient.

Primary care startup Forward laid off approximately 10 employees, representing 3% of its roughly 350-person workforce, in April 2020 amid the coronavirus pandemic. The cuts primarily affected recruiting and expansion roles, as the company adjusted to unexpected changes during the health crisis. Despite the layoffs, Forward remained on the front lines, providing COVID-19 testing and care at its clinics in cities like San Francisco, New York, and Washington, D.C. The venture-backed startup operates on a membership model, charging $150 per month for primary care services without accepting insurance.

ConsenSys laid off 91 employees representing approximately 14% of its workforce on 2020-04-20.

Zum, a children's transportation service based in the SF Bay Area, laid off at least 28 employees across all departments earlier this week. The layoffs come as school closures have negatively impacted demand for its services, a challenge also faced by rival HopSkipDrive. While the exact percentage of its workforce affected is not specified, the cuts reflect broader difficulties in the edtech and transportation sectors amid shifting operational environments.

In April 2020, the Santa Monica-based digital advertising firm GumGum laid off 25% of its workforce, affecting approximately 90 employees out of a total of around 360. The layoffs impacted both its core contextual advertising business and its sports analytics division. CEO Phil Schraeder cited the severe economic impact of the COVID-19 pandemic, which caused a significant drop in digital ad revenue across the industry. Despite having secured $22 million in Series D funding just two months prior in February, the company stated the cuts were a necessary adjustment to weather the volatile market and ensure long-term stability. This move reflected broader challenges in the adtech sector, where many firms were forced to reforecast revenues downward due to the crisis.

Kickstarter plans layoffs after new projects on the site drop off by 35 percent, indicating a restructuring effort due to decreased project submissions.

Motif Investing, an online investing platform, announced its shutdown on April 18, 2020, effectively laying off its entire workforce. While the exact number of employees affected was not specified, the closure was attributed to the economic pressures exacerbated by the coronavirus pandemic. Operating in the fintech industry, Motif offered thematic and socially responsible investment portfolios. The company's decision to cease operations reflects the broader challenges faced by financial technology startups during the market volatility and uncertainty of early 2020.

ContaAzul, a Brazilian fintech platform for small and medium-sized enterprises, laid off 140 employees in April 2020 as part of coronavirus-related restructuring. The company, which helps businesses manage accounting, faced economic pressures from the pandemic and sought to streamline operations. While undergoing these cuts, ContaAzul also launched initiatives like free online courses to support SMEs during the crisis. The layoffs reflect broader challenges in Brazil's startup ecosystem, where multiple companies, including GetNinjas and Oyo, also reduced staff due to the downturn.

Greenhouse, a New York-based company that provides applicant tracking software for recruiting, laid off 120 employees, representing 28% of its workforce, on Friday. This move reflects broader challenges in the recruiting tech sector, coming just a week after competitor Lever cut 86 employees. The company is offering affected staff 8 weeks of severance and 8 months of healthcare coverage.

Sweetgreen, a fast-casual salad chain in the food and beverage industry, laid off 10% of its headquarters staff in late March 2020, affecting 35 employees out of 350 at its Culver City, Los Angeles office. The layoffs were a response to plunging revenue caused by the COVID-19 pandemic, which severely impacted in-store dining. Despite being a tech-forward company with strong online ordering, the broader restaurant industry devastation led to these cuts, which were executed abruptly, leaving employees surprised after earlier assurances of job security.

In April 2020, Brazilian real estate rental startup QuintoAndar laid off approximately 8% of its workforce, affecting around 88 employees out of a pre-crisis total of 1,100. The layoffs, which occurred across all areas of the company, were a direct response to the COVID-19 pandemic, which led to a projected decline in demand for residential rental and property sales. As a unicorn valued at over $1 billion, QuintoAndar stated the restructuring was necessary to adapt operations to the new market context and ensure the company could meet its commitments. The affected employees received a comprehensive benefits package, including extended health coverage and support services. This move was part of a broader wave of layoffs across Brazilian startups and tech companies during the early stages of the pandemic.

Zilingo laid off 44 employees representing approximately 5% of its workforce on 2020-04-17.

Dispatch representing approximately 38% of its workforce on 2020-04-17.

In April 2020, the Tor Project, a nonprofit focused on privacy software, was forced to lay off 13 employees due to the severe financial impact of the COVID-19 crisis. This reduction brought its team down to a core of 22 people, meaning approximately 37% of its workforce was cut. The organization stated these difficult steps were necessary to ensure its survival and its continued ability to provide the Tor Browser and critical censorship circumvention services. Despite the layoffs, Tor reaffirmed its dedication to its mission, emphasizing the growing urgency for privacy and secure online access during the global pandemic.

Indian logistics startup BlackBuck is laying off between 200 to 250 employees, primarily from its customer experience and operations teams, as a direct result of the severe disruption caused by the nationwide COVID-19 lockdown in early 2020. The lockdown drastically reduced the movement of goods across the country, crippling operations for logistics firms. The layoffs, confirmed in April 2020, represent a significant workforce reduction for the startup, which had raised over $200 million from prominent investors and served major clients like Asian Paints and Hindustan Unilever. The company was reportedly attempting to help place the affected employees in other organizations.

BitGo representing approximately 12% of its workforce on 2020-04-17.

QuintoAndar laid off 88 employees representing approximately 8% of its workforce on 2020-04-17.

Grailed, an online marketplace for men's clothing based in New York City, laid off at least 12 employees across all departments last week. While the exact percentage of its workforce affected is unclear, the cuts reflect broader challenges in the tech and e-commerce sectors as companies adjust to economic pressures. The layoffs were confirmed by a high-ranking HR employee, highlighting the ongoing trend of restructuring within the industry.

CarGurus, an online car marketplace, laid off 130 employees last month, representing 13% of its workforce. The company cited the impact of stay-at-home orders, which forced many car dealers to close and effectively paused vehicle sales. Despite efforts to reduce marketing expenses and offer significant discounts to support dealer partners, CarGurus was unable to avoid these staff reductions. The layoffs affected all departments of the company.

Purse representing approximately 100% of its workforce on 2020-04-16.

Funding Societies, a Singapore-based fintech company specializing in SME financing, laid off approximately 10% of its workforce in early 2023. This reduction, affecting around 30 employees out of a total of roughly 300, was part of a strategic restructuring to enhance operational efficiency amid challenging global economic conditions. The move reflects broader pressures within the fintech industry as companies adjust to a tighter funding environment and focus on sustainable growth.

In June 2020, amid the COVID-19 pandemic and a nationwide lockdown in India, the customer engagement platform CleverTap implemented layoffs as part of cost-cutting measures to ensure business survival. While the exact number of employees let go was not specified in the provided article excerpt, the context indicates it was part of a broader wave of workforce reductions across the Indian startup ecosystem. The industry-wide crisis forced many tech companies, including unicorns and growth-stage startups, to make difficult choices between preserving jobs and extending their financial runway. CleverTap, operating in the SaaS and marketing technology industry, took this step during a period of severe economic uncertainty and falling demand across sectors.

LumenAd, a marketing technology company, has conducted a reduction in force (RIF), as evidenced by a spreadsheet listing numerous affected employees seeking new roles. The document includes at least 100 rows, suggesting a significant layoff event impacting software developers, data scientists, and marketing automation specialists, primarily based in Missoula, Montana. While the exact percentage of the workforce affected is not specified, the scale indicates a major restructuring. The context points to broader economic challenges in the tech and ad-tech industries, with these layoffs likely occurring recently, given the employees are actively searching for new positions.

SquadVoice on 2020-04-16.

Kodiak Robotics laid off 15 employees representing approximately 20% of its workforce on 2020-04-15.

View, a 13-year-old dynamic glass company based in Milpitas, California, has conducted layoffs affecting an unspecified number of employees, including at its plant in Olive Branch, Mississippi, as reported in April 2020. While the exact scale of the job cuts is not disclosed, former employees cited the pandemic as the reason, with one noting the company "really cleaned house," impacting several long-time staff. View, which had raised $1.1 billion from SoftBank's Vision Fund in 2018, operates in the building materials and green technology industry, focusing on energy-efficient glass for commercial real estate. The layoffs reflect broader challenges during the COVID-19 crisis, though the company's total workforce and percentage affected remain unclear.

Shop101, a Mumbai-based social commerce startup, laid off approximately 200 employees in early April, representing nearly 40% of its total workforce of 400-500. Additionally, around 100 contractual call center staff were terminated. The company, which had recently secured INR 28.69 crore in Series C funding in late March, cited cash flow challenges exacerbated by the COVID-19 pandemic as the reason for the downsizing. Originally planned for June, the layoffs were accelerated. Remaining employees faced pay cuts of 15-30%, while founders took 50% reductions. The move surprised staff, especially after internal reports of INR 100 crore profits for FY19-20 in February. Severance was inconsistent, with some receiving only one month's pay.

Akulaku, a prominent Indonesian fintech company, conducted a round of layoffs affecting an unspecified number of employees. The workforce reduction was part of a broader strategic restructuring aimed at optimizing operational efficiency and adapting to evolving market conditions within the competitive digital finance and e-commerce industry. While the exact scale and percentage of the layoffs were not publicly detailed, the move reflects ongoing adjustments in the tech sector as companies streamline their operations to ensure long-term sustainability.

Trove Recommerce, a company that assists retail brands with their resale programs, laid off 13 employees last week, affecting all departments. The layoffs were confirmed by a company executive, though the specific reason was not disclosed. Based in the San Francisco Bay Area, Trove operates in the retail technology and recommerce industry, focusing on helping brands manage second-hand sales. This reduction represents a significant workforce adjustment for the company, reflecting broader challenges or strategic shifts within the tech and retail sectors.

Carta, a fintech company providing equity management software, laid off 161 employees last week, representing 16% of its workforce across all departments. The layoffs were part of a restructuring effort, with the company citing a need to streamline operations. Affected employees are receiving a generous severance package, including three months of pay and healthcare coverage through the end of the year. The company operates globally with offices in San Francisco, Salt Lake City, and Rio de Janeiro.

Tulip Retail, a company providing mobile-first enterprise software for retail associates, laid off 14 employees due to the severe impact of COVID-19 on the retail industry. The layoffs were a cost-cutting measure to ensure the company's long-term sustainability and mission, despite efforts to reduce expenses elsewhere. This difficult decision was announced by CEO Ali Asaria, who expressed gratitude for the contributions of the affected team members. The move reflects broader challenges in the retail sector during the pandemic, as companies adapted to shifting market conditions.

Opendoor, a San Francisco-based startup that operates an online platform for buying and selling homes, laid off 600 employees yesterday, representing 35% of its workforce. The cuts affected all departments and mark one of the largest layoffs among pre-IPO companies since the pandemic began, following only Toast's recent reduction of 1,300 staff. The company cited broader economic challenges as it scales back operations, offering affected employees eight weeks of pay and 16 weeks of health insurance reimbursement. This move reflects the significant pressures facing the real estate tech sector amid shifting market conditions.

Indonesian travel photography startup SweetEscape laid off at least 30% of its workforce in April 2020, a significant reduction driven by the severe impact of the COVID-19 pandemic on the global travel industry. The cuts reflect the broader crisis that hit many travel-related startups, as lockdowns and travel restrictions drastically reduced demand for services like on-location photography. While the exact number of employees affected wasn't specified, the percentage indicates a substantial downsizing for the company, which had previously secured Series A funding to expand its AI capabilities.

Zume, a troubled SoftBank-backed robotics startup, laid off approximately 200 employees on April 15, 2020, representing two-thirds of its workforce after earlier cuts in January. This drastic reduction left the company with about 100 staffers, down from nearly 1,000 at its peak when it was valued over $1 billion. The layoffs were driven by failed funding efforts, exacerbated by the COVID-19 pandemic, which caused investors to withdraw and disrupted supply chains and customer contracts. The cuts affected two major divisions, including Zume Forward and the Gigaranch team, shifting the company's focus to compostable food packaging amid financial struggles and executive departures.

In April 2020, action camera manufacturer GoPro announced a significant restructuring, laying off over 200 employees, which amounted to 20% of its workforce. The company, impacted by the COVID-19 pandemic's disruption to its global retail distribution, is shifting to a direct-to-consumer business model centered on GoPro.com to improve margins. This strategic pivot includes reducing office space in five regions and cutting operating expenses, targeting a $100 million reduction in 2020. Founder and CEO Nicholas Woodman also forewent his salary for the year, with the board receiving no cash compensation, as GoPro withdrew its earnings guidance for the first half of 2020 amid these changes.

Dude Solutions, a software company providing operations management solutions, has laid off 20% of its workforce due to the severe economic impact of the COVID-19 pandemic. The company's leadership announced the difficult decision after a month of crisis management, which included cutting non-essential spending and freezing hiring. The reduction was deemed necessary to extend the business runway and ensure long-term stability. While the exact number of employees affected wasn't specified, the layoffs were described as heartbreaking, with the company providing severance and support to those impacted. The announcement was made in early 2020 as the global crisis unfolded, emphasizing the pandemic's widespread effect on businesses.

VSCO, a popular photography mobile app, laid off 45 employees yesterday, representing 30% of its workforce. The CEO cited the need to transition toward a self-sustaining business model as the reason for the cuts. The company is offering a minimum of seven weeks of severance pay, two months of health coverage, and job placement assistance to those affected, most of whom are based in the San Francisco Bay Area. This restructuring reflects broader challenges in the tech industry as companies adjust to economic pressures.

Xerpa, a Brazilian HR and payroll technology company, laid off 10 employees due to drastic market changes caused by the COVID-19 pandemic. This difficult decision, announced in a post by company leadership, was part of an adjustment to the company's profile to navigate the ongoing crisis. While the exact total workforce and percentage affected are not specified in the announcement, the layoffs impacted a close-knit team, described as "amazing friends and colleagues." The company expressed confidence in its remaining team and future, while actively recommending the affected professionals to other employers in the industry.

In April 2020, amid the economic turmoil of the COVID-19 pandemic, luxury consignment retailer The RealReal announced significant workforce reductions. The publicly traded online platform laid off 10% of its employees and placed an additional 15% on furlough. These measures, part of a broader cost-cutting strategy that included executive pay reductions and a hiring freeze, were aimed at reducing operating expenses by approximately $70 million to preserve liquidity. The furloughs affected staff across e-commerce centers, retail stores, consignment offices, sales, and headquarters. CEO Julie Wainwright stated the moves were necessary to weather the crisis and position the company for a strong recovery once the economy stabilized, highlighting the company's focus on its balance sheet and long-term operational scaling.

In April 2020, Southeast Asian budget hotel network RedDoorz laid off a significant portion of its workforce as part of drastic cost-cutting measures to survive the COVID-19 pandemic's severe impact on the travel and hospitality industry. While the exact number of employees affected was not publicly detailed, the layoffs were described as substantial and necessary to extend the company's financial runway. The move was part of a broader trend among regional startups, where investors advised that budget cuts and furloughs were inevitable for survival amid the global crisis.

Envoy laid off 58 employees representing approximately 30% of its workforce on 2020-04-14.

In April 2020, amid the economic turmoil of the coronavirus pandemic, mobile gaming marketplace Skillz laid off 21 employees, including senior analyst Alexander Muhr. The San Francisco-based startup, which had been optimistic about its future and a potential IPO, was among the many tech companies forced to cut costs as the crisis hit. While the exact percentage of staff affected is not specified, the layoffs reflect the broader squeeze felt by startups fearing funding shortages and revenue declines. Despite the upheaval, many laid-off tech workers, including those from Skillz, reported continued recruiter interest, offering a glimmer of hope in an otherwise challenging job market marked by widespread unemployment filings and hiring freezes across the industry.

DataStax, an enterprise software startup valued at $967 million, laid off approximately 15 to 20 employees in the second week of April 2020. This marks the company's third round of job cuts since new CEO Chet Kapoor took over in October 2019, following layoffs in December and February, and is part of a broader trend of restructuring over the past year. The recent reductions, which primarily affected sales and solutions engineering roles, were attributed by Kapoor to the company not growing quickly enough to justify its headcount. These cuts come amid leadership changes and a shift in strategy toward appealing more to developers, following a period where DataStax had been reportedly preparing for an IPO in spring 2019.

TouchBistro, a Toronto-based startup providing point-of-sale and restaurant management software, temporarily laid off 131 employees, representing 23% of its 560-person workforce, due to the devastating impact of COVID-19 on its core restaurant client base. The layoffs, announced in March 2020, primarily affected teams in Canada, the U.S., and the U.K., while employees in Mexico faced salary reductions and a shortened workweek. As restaurants globally were forced to close or pivot to takeout, TouchBistro shifted its focus to developing free or discounted tools to support customers' cash flow and delivery operations. CEO Alex Barrotti reduced his salary to zero, and the company maintained benefits and stock option vesting for laid-off staff, aiming to preserve the business for recovery once the pandemic subsided.

In April 2020, Brazilian fintech Neon laid off less than 10% of its workforce due to the economic impact of the COVID-19 pandemic. With a total of around 700 employees at the time, this adjustment meant fewer than 70 people were affected. The company, which offers digital banking services and had grown rapidly in 2019, stated that part of the layoffs were performance-related, while another portion was linked to areas directly hit by the crisis, such as services for small and medium-sized businesses. The São Paulo-based startup, backed by significant investments, was among several Brazilian companies forced to make cuts as the coronavirus disrupted economic activities.

Groupon, the online marketplace for local deals, announced on Tuesday that it is laying off 2,800 employees, which represents 44% of its total workforce. The cuts span all departments, including a significant number of engineering roles. The company cited a "material deterioration" in its business, largely due to the widespread closures of local businesses it partners with, as the primary reason for this drastic restructuring. This major reduction highlights the severe impact of the economic downturn on the tech and e-commerce industry, affecting a company of its scale.

Zoox laid off 100 employees representing approximately 10% of its workforce on 2020-04-13.

In April 2020, Clearbanc, a Toronto-based fintech company providing equity-free funding to startups, laid off 17 employees, representing about 8% of its staff. The layoffs, affecting roles from office managers to sales, were implemented to navigate the long-term economic uncertainties brought on by the COVID-19 pandemic. Despite the cuts, the company emphasized it would continue operations and support affected employees with extended benefits and job search assistance. Clearbanc, which had rapidly grown, hiring over 140 people the previous year and disbursing $1 billion to numerous startups, noted that while demand for its capital remained strong, it would adopt a more conservative investment approach due to market volatility. The layoffs were seen as a strategic adjustment to ensure sustainability amid the global crisis.

Geekwire laid off 5 employees representing approximately 31% of its workforce on 2020-04-10.