Modsy

In June 2022, online interior design startup Modsy ceased its core design services, resulting in layoffs, particularly among its design team, and disrupting customer orders. While the exact number of employees affected wasn't disclosed, the cuts followed a failed acquisition deal. The company, which had operated for seven years, pivoted its focus to developing a SaaS platform called Modsy Pro, a software service aimed at professional interior designers. This shift marked a significant strategic change from its original consumer-facing model of AI-powered virtual room design and furniture sales.

In April 2020, Modsy, an e-commerce startup specializing in 3D room visualizations for home design, confirmed a round of layoffs amid the economic uncertainty of the COVID-19 pandemic. The company declined to specify the exact number of employees affected, but reports suggested significant cuts, with executives including CEO Shanna Tellerman taking a 25% pay cut. Modsy, which had raised $70.8 million in venture capital, cited the need to maintain a sustainable business during unprecedented circumstances. The layoffs reflect broader challenges in the e-commerce and home improvement sectors, as consumer spending shifted away from discretionary purchases like furniture.