Fractal Software, a New York-based venture studio, has laid off at least 28 employees, representing about 25% of its staff, as it shifts its strategy away from creating new startups. The layoffs, which began in December and affect recruiters and research analysts, are part of a broader move to focus resources on supporting its existing portfolio of around 130 companies. This strategic pivot comes amid a challenging market downturn that has made fundraising difficult for startups. The company confirmed the layoffs and noted that affected employees will stay on until September 1, while it continues to hire for a few final startup launches before fully transitioning to portfolio support.
