Career Karma

Career Karma, an edtech startup providing a learning navigation platform, laid off 22 employees in January 2023, following a previous cut of 60 staff five months earlier. This latest reduction, confirmed by CEO Ruben Harris, reflects ongoing challenges in the edtech sector as companies adjust to a tougher macroeconomic climate. The layoffs are part of a strategy to extend the company's financial runway to five years, shifting from a more typical three-year plan, amid slower enterprise sales cycles and investor caution. The move underscores the industry-wide pressure to right-size operations and adapt to uncertain demand from large corporate customers.

Career Karma, a learning navigation platform, laid off 60 employees earlier this week in July 2022, which reportedly affected about a third of its staff. The company, which connects students with bootcamps and training programs to enter the tech industry, now has over 120 remaining employees. The layoffs primarily impacted marketing and recruitment teams, while the C-suite was unaffected. CEO Ruben Harris cited the need to extend the company's runway amid a prolonged economic recovery in the tech sector, estimating it could last 3 to 4 years. Following a $40 million Series B round earlier in 2022, the startup aims to stretch its cash reserves, now having over three years of operating funds without requiring additional funding.