Koho

Canadian fintech startup Koho has laid off 42 employees, representing 14% of its workforce, reducing its total headcount to 300. The company-wide cuts, confirmed in early 2023, are part of a restructuring effort amid ongoing tough market conditions in the tech industry. CEO Daniel Eberhard stated that the layoffs are not aimed at extending the company's financial runway but rather reallocating capital toward growth initiatives to accelerate scaling and move toward profitability. This follows a previous restructuring in the fall that affected 15 roles. Koho, which raised $210 million in a 2022 Series D round nearing a $1 billion valuation, remains well-capitalized and continues to hire selectively in areas like product and marketing while navigating the current economic downturn.

Koho, a Canadian fintech company, is among at least 10 tech firms in Canada that have recently conducted layoffs as the industry braces for a prolonged economic downturn. The company, alongside others like Properly, TealBook, D2L, and League, is cutting staff to reduce costs and extend its financial runway amid challenging market conditions. This trend is driven by a tough fundraising environment, rising interest rates, and inflation, which have forced companies across various sectors to adjust their growth expectations and workforce size. While specific numbers for Koho's layoffs are not detailed in the article, the broader context highlights a significant wave of job cuts in the Canadian tech scene during late 2022, reflecting efforts to navigate uncertain economic times.