Layoffs in Germany

Berlin-based event startup Artnight laid off 26 employees last week, representing over one-third of its workforce, which now stands at 46. Founder Aimie-Sarah Carstensen cited the challenging macroeconomic environment as the reason, expressing concern that consumers might cut back on discretionary spending for leisure activities like Artnight's painting workshops. The company, founded in 2016 and known from the TV show "Die Höhle der Löwen," had already struggled during the pandemic due to its initial reliance on in-person events. Although it temporarily shifted to online formats, Artnight has since refocused entirely on its original core business of offline workshops and discontinued other event formats to streamline operations. The layoffs affected all departments, including management, and were not driven by investor pressure, according to the founder.

German micromobility giant Tier Mobility laid off 180 employees, representing 16% of its staff, on August 23, 2022. The company, previously valued at $2 billion, cited the poor economic and funding climate as the primary reason, stating it needed to reduce projects and business lines to accelerate its path to profitability. The layoffs, concentrated in Berlin, affected various teams, with marketing, market development, and technology being hit hardest. This move followed a period of aggressive expansion, including acquisitions like Spin and Nextbike, and reflects a broader trend of cutbacks in the late-stage tech and transportation sectors as companies adjust to challenging market conditions.

Wayfair, the online home furnishings retailer, announced layoffs of 870 employees, representing about 5% of its global workforce of 18,000. The cuts, which include 400 positions in its Boston headquarters, were communicated by CEO Niraj Shah on Friday, January 20, 2023, as the company responded to a quarterly loss and declining sales attributed to shifting consumer spending and high inflation. This move, impacting 10% of its corporate team, triggered a significant 20% drop in Wayfair's stock. The layoffs reflect broader economic challenges and a post-pandemic slowdown in e-commerce demand that surged during the early COVID-19 years.

SoundCloud, the music streaming platform, announced layoffs impacting up to 20% of its global workforce in early August 2022, as confirmed by CEO Michael Weissman. This reduction, part of a significant company transformation, is attributed to the challenging economic climate and financial market headwinds, aiming to position the company for long-term sustainability and profitability. While the exact number of affected employees wasn't specified, the 20% cut follows a period of growth, including a profitable quarter in 2020 and an annual revenue run rate around $300 million. The company, which had previously laid off 40% of staff in 2017, is providing support to those transitioning and remains focused on its mission in the competitive music tech industry.

Berlin-based proptech startup McMakler, considered a future unicorn, laid off at least 90 to 120 employees in late July 2022, shortly after a large company-wide summer party. The layoffs, primarily affecting HR and finance roles, along with non-renewed contracts and reduced internships, impacted roughly 10-12% of its workforce of about 1,000. Company leadership internally cited the tense real estate market and broader economic changes as reasons, stating the need for early cost control despite being a growth company. The sudden move surprised employees, even amidst existing expectations for austerity measures.

Berlin-based Amazon aggregator unicorn SellerX, valued over $1 billion and backed by investors like BlackRock, laid off approximately 28 employees in early May 2022. This represents about 4% of its then 700-person workforce. The layoffs are part of a broader downturn affecting the once-booming Amazon aggregator industry, which saw rapid growth and heavy VC investment during the pandemic. Rising acquisition costs for sellers and decreasing consumer spending power have pressured the business model, leading to similar job cuts at other major aggregators like Thrasio and Heroes across Europe and the US.

Bryter, a German no-code automation platform provider, has laid off approximately 20 employees, which represents around 20% of its workforce. The layoffs occurred in early 2024 as part of a strategic restructuring aimed at extending the company's financial runway and focusing resources on core product development and key markets. Operating in the enterprise software and legal tech industry, Bryter, which had scaled to over 100 employees, cited challenging market conditions and a shift toward profitability as reasons for the downsizing.

In July 2022, Berlin-based startup Lendis laid off 15% of its workforce, affecting approximately 18 employees out of a team of over 120. The company, which shifted from office furniture rental to B2B software for hybrid work management during the pandemic, cited the ongoing economic crisis and challenging funding environment as reasons for the cuts. Co-founder Stavros Papadopoulos explained that while Lendis continues to grow, these layoffs were necessary to navigate the downturn sustainably. Reports indicate the layoffs primarily impacted recent hires and employees still in probation periods across various departments.

German quick-commerce startup Gorillas is closing its Italian operations, laying off all 540 employees in the country as it enters liquidation procedures. The move, announced in early July 2022, is part of the company's strategic shift to focus on more profitable and promising markets, with Italy deemed not among them. This exit highlights the ongoing challenges within the digital retail and instant delivery sector, where achieving sustainable profits remains difficult despite strong initial investor interest. The shutdown involves shuttering all its Italian dark stores.

Finleap Connect laid off 14 employees representing approximately 10% of its workforce on 2022-06-30.

Berlin Brands Group (BBG), a German e-commerce company that acquires and scales online brands, laid off nearly 100 employees in June 2022, representing about 10% of its workforce. The cuts primarily affected staff in Germany and were driven by a market slowdown following the pandemic e-commerce boom. Founder Peter Chaljawski cited a "deep break in the market," with rising costs and weakened growth prompting a strategic shift from aggressive expansion to securing profitability. The company, which reported over €400 million in revenue in 2021 and had raised significant funding earlier that year, implemented these layoffs as part of broader cost-reduction efforts amid declining industry growth.

German fintech startup Trade Republic, a neobroker with around 700 employees, conducted layoffs in June 2022 as part of a restructuring effort. While the exact number of affected employees was not disclosed, the company announced it would maintain its workforce size around 700, indicating a targeted reduction. The layoffs, influenced by a shifting market environment and rising interest rates that impacted tech valuations, were aimed at refocusing on core product development. Despite a recent €250 million funding round led by investor Sequoia, which had urged portfolio companies to cut costs, Trade Republic planned to continue hiring in certain areas while trimming teams like data science. The move reflected broader trends in the fintech industry, where peers like Klarna and PayPal also faced cuts.

Berlin-based fintech startup Kontist has laid off 50 employees, which represents about a quarter of its workforce. The company, which provides banking services for business customers, announced the cuts on May 25, 2022, citing organizational restructuring to focus more on tax advisory services. This move reflects a broader trend in the fintech industry, where investors are increasingly pressuring loss-making tech firms to control costs. Following similar layoffs at companies like Klarna, Kontist's reduction highlights a shift from rapid expansion to greater financial discipline among startups.

Nuri laid off 45 employees representing approximately 20% of its workforce on 2022-05-25.

Berlin-based on-demand grocery delivery startup Gorillas laid off approximately 300 employees in May 2022, representing half of its global office workforce of 600. This significant reduction is part of a strategic shift to focus on its five core markets—the UK, US, Germany, France, and the Netherlands—which generate 90% of its revenue. The company, which operates in the competitive instant grocery delivery sector, is also evaluating its presence in four other European countries. The layoffs reflect broader challenges in the industry, where rapid expansion fueled by venture capital and pandemic demand has raised sustainability concerns, with many services relying on heavy subsidies and facing scrutiny over their business models and urban impact.

In February 2022, Berlin-based AI startup Rasa laid off 59 employees, representing about 40% of its workforce, in a single day. The company, which had gained attention as a German Silicon Valley hopeful and was the first German investment of Andreessen Horowitz, faced a critical financial situation. To prevent running out of money, Rasa implemented these mass layoffs as a necessary restructuring measure. The move reflects broader challenges in the tech startup landscape, where even promising ventures must navigate funding pressures and adjust their operational scale to ensure survival.

Delivery Hero, a major player in the food delivery and quick-commerce industry, laid off 300 employees in Germany following the sudden shutdown of its Foodpanda brand's operations in the country on December 27, 2021. This reduction impacted approximately 30% of Foodpanda's local workforce, which totaled around 1,000 people, including riders and pickers. The layoffs primarily affected corporate staff in areas like sales, HR, and marketing, rather than delivery couriers, who may transition to roles with partners like Gorillas, in which Delivery Hero holds an investment. The decision, described as abrupt and surprising by employees and observers alike, was part of a strategic exit from the German market, with the company offering severance packages and assistance in finding new positions within its network.

Berlin-based restaurant reservation platform Quandoo has laid off 87 employees, representing 20% of its global workforce, which previously stood at around 430 people. The job cuts, announced in early February 2021, were a direct result of the devastating impact of the COVID-19 pandemic on the restaurant industry worldwide. As lockdowns and restrictions forced widespread restaurant closures, demand for Quandoo's services plummeted. The company, a startup success story acquired by Japan's Recruit Holdings, had previously implemented short-time work schemes in Germany and other countries before resorting to layoffs to ensure the company's long-term viability.

GetYourGuide laid off 90 employees representing approximately 17% of its workforce on 2020-10-14.

Mapify, a travel-related technology company, has laid off several team members due to the ongoing crisis and uncertainty in the travel industry. The layoffs were communicated in a post by Patrick Haede, who expressed deep gratitude for the employees' contributions. The decision was driven by a second wave of insecurity and an unclear outlook for travel, following an initial wave in April. While the exact number of affected employees and the company's total workforce were not specified, the move reflects the broader challenges facing the travel sector. The company is supporting the impacted individuals by providing work samples and detailed references to aid their job search.

Zeitgold, a Berlin-based startup specializing in automated bookkeeping for small businesses, laid off 75 employees last week, representing 71% of its workforce and leaving only 30 team members. The company decided to discontinue its main product after realizing that, despite years of development, the service still required extensive manual labor, making it unsustainable to scale. Zeitgold will now shift focus to developing new products like tax preparation software that can operate without human involvement. The layoffs affected staff across multiple departments in Berlin and Tel Aviv, and the company has launched a talent directory to support its former employees. This move comes just three months after Zeitgold raised a $29 million Series B funding round.

In June 2020, Bird, a micromobility company, laid off approximately 100 employees from Circ, the European scooter-sharing startup it had acquired just months earlier. This represented a significant portion of Circ's workforce, as the layoffs coincided with Bird shutting down Circ's entire Middle East operations in Bahrain, the UAE, and Qatar. The company cited extreme summer heat as the reason for a temporary "pause," but the move was part of a broader industry pullback during the COVID-19 pandemic to cut costs. Concurrently, Bird scrapped between 8,000 and 10,000 Circ scooters, stating they were worn out and failed to meet safety standards, despite receiving purchase offers from other mobility firms.

In May 2020, German fintech challenger bank N26 laid off nine employees from its New York office, representing 10% of its 90-person U.S. team. This marked the first time the rapidly growing Berlin-based startup had to conduct operational layoffs. The cuts were part of broader cost-saving measures due to the COVID-19 pandemic, which had already led to furloughs for 150 staff in Europe. Unlike in Europe, the lack of comparable state support in the U.S. prompted the company to consolidate roles, primarily in recruiting. Following the layoffs, the New York office retained about 80 employees, with some functions shifting to Berlin. N26, which had over 1,000 employees globally at the time, offered affected U.S. staff severance and extended health benefits above the national average.

Trivago, a major online travel comparison platform, is implementing significant layoffs as part of organizational restructuring. This move comes in direct response to the severe financial impact of the COVID-19 pandemic, which caused a catastrophic drop of over 95% in its crucial referral revenue in late March 2020. The company, heavily reliant on advertising revenue from clicks sent to partners like Booking Holdings and its parent Expedia Group, is cutting costs to survive the unprecedented downturn in global travel. While the exact number of employees affected was not specified in the announcement, the headcount reductions are described as substantial, highlighting the profound crisis facing the travel industry.

Horizn Studios, a Berlin-based smart luggage startup, announced on April 24, 2020, that it is entering a self-administered restructuring process due to severe financial pressure from the COVID-19 pandemic, which caused its revenue to drop by over 50%. As part of this effort, the company is laying off 25% of its approximately 60 employees, affecting about 15 people. The startup, which had raised around €25 million in funding, aims to secure new financing within three months to survive the crisis and eventually rebuild its brand.

In April 2020, amidst the COVID-19 pandemic, Munich-based fitness equipment manufacturer eGym laid off a significant portion of its workforce. The layoffs, executed via video calls, were criticized by an anonymous employee as "inhuman," alleging the company used the crisis as a pretext for mass terminations despite ongoing revenue. eGym justified the drastic action as a necessary response to the unprecedented economic impact of the pandemic, stating it aimed to secure remaining jobs and focus on customer service and operational excellence. The layoffs affected employees with families and health concerns, sparking controversy during a period when many Bavarian companies were opting for short-time work instead.

In April 2020, streetwear and media publisher Highsnobiety laid off 25% of its workforce, totaling 51 employees, as the COVID-19 pandemic severely impacted its operations. The cuts, affecting 38 staff in Berlin and 13 in the U.S., included the closure of its commerce division. Founder David Fischer cited the crisis's devastating effects, noting that cost-saving measures were insufficient, and the commerce model became unsustainable as brands halted shipping and production. The 15-year-old company, which had invested in direct-to-consumer product creation, was forced to reimagine its business amid supply chain disruptions and shifting consumer demand.