Layoffs in United States

Apeel Sciences on 2022-07-11.

SoftBank-backed food-tech startup Nextbite, based in Los Angeles, is restructuring its operations and has laid off an undisclosed number of employees as of July 8, 2022. The company, which operates virtual restaurant brands and was formerly known as Ordermark, is adapting to shifting market conditions where venture capital firms are prioritizing profitability over rapid growth. CEO Alex Canter confirmed the organizational changes, which coincide with the appointment of restaurant industry veteran Denny Post as co-president to oversee marketing, operations, and culinary innovation. Nextbite's portfolio includes over a dozen delivery-only brands, such as Packed Bowls by Wiz Khalifa and George Lopez Tacos, and it had previously raised $120 million in a SoftBank-led funding round in 2020. The layoffs reflect broader challenges in the food-tech and startup sectors, with several other SoftBank-backed companies also restructuring amid market volatility.

In July 2022, advertising and marketing tech firm NextRoll laid off just under 3% of its workforce, affecting approximately 26 employees out of a total of 874. The cuts primarily impacted the sales and recruiting teams. This move reflects broader industry trends, as numerous adtech and martech companies are implementing layoffs in anticipation of an economic slowdown. NextRoll, which rebranded from AdRoll in 2019 to expand beyond retargeting into broader marketing technology, had previously conducted a significant 30% reduction in early 2020 due to the pandemic. The company serves small and midsize brands through its RollWorks B2B arm and AdRoll advertising services.

Calibrate Health Inc., a New York-based health-tech startup founded in 2019, laid off 156 employees on July 8, representing 24% of its 652-person workforce. The company, which raised $100 million last year and focuses on treating obesity through lifestyle and medication programs, implemented the restructuring to extend its financial runway and accelerate its path to profitability. The job cuts affected roles across the organization as the early industry leader aims to move closer to sustainable operations.

Butler Hospitality, a New York-based on-demand room service and amenities platform in the hospitality industry, laid off its entire workforce of roughly 1,000 employees in May 2022, effectively dissolving the company. This came shortly after the startup had raised $50 million, highlighting the severe challenges faced by on-demand delivery ventures. Founded in 2016, Butler operated as a ghost kitchen provider for hotels, but succumbed to economic pressures and market headwinds, leaving its staff without warning just days after assuring vendors that services would continue.

In July 2022, Argo AI, an autonomous vehicle startup backed by Ford and Volkswagen, laid off approximately 150 employees, representing about 5% of its global workforce of over 2,000. The company cited a need for prudent adjustments to its business plan amid growing recession fears, acknowledging it had hired too quickly and overshot its targets. The layoffs affected various departments, including recruiting, digital media, communications, and operations. Despite the cuts, Argo AI continued hiring for engineering and technical roles while progressing with driverless testing in Miami and Austin as part of its commercialization efforts.

Digital marketing company Adwerx laid off 40 employees on July 7, 2022, as part of a strategic downsizing. The cuts, representing about 21% of its roughly 150-person workforce, resulted from scaling back new initiatives in non-core verticals to improve profitability amid macroeconomic uncertainty. The real estate and mortgage-focused firm stated it would retain its remaining staff and focus on its core markets, with no further layoffs planned. Affected employees, notified in one-on-one meetings, received severance packages.

In July 2022, Israeli insurtech unicorn Next Insurance laid off 150 employees, representing approximately 17% of its workforce. The majority of the cuts were in the U.S., with around 40 positions affected in Israel. The company, which provides digital insurance for small and medium-sized businesses and had about 200,000 customers, cited the need to adapt to a worsening macroeconomic environment and shift focus toward long-term profitability. Despite tripling its business in 2021 and projecting over $800 million in annual sales for 2022, Next Insurance made this difficult decision to streamline operations. The company had previously raised $250 million at a $4 billion valuation in March 2021.

Twitter on 2022-07-07.

Marketing startup Emotive, based in Sawtelle, Los Angeles, laid off 30 employees this week, representing 18% of its roughly 167-person workforce. The cuts, announced on July 7, 2022, are part of a strategic shift toward profitability amid a broader economic downturn and declining valuations in the software-as-a-service sector. CEO Brian Zatulove emphasized the move aims to secure the company's financial runway, though he noted it wasn't directly tied to e-commerce trends, as consumer spending remains stable. Emotive, which provides an AI-enhanced text message marketing platform for e-commerce, joins other local SMS marketing firms like Voyage in reducing staff recently.

Healthcare payments startup Cedar, a digital health unicorn valued at $3.2 billion, laid off 24% of its workforce on July 6, 2022, as part of a strategic adjustment to market conditions. CEO Florian Otto cited the need to adapt to current market realities and align with the company's evolving strategy following its acquisition of Ooda Health. The layoffs, which affected an unspecified number of employees from a total that had expanded with offices in New York, San Francisco, and Salt Lake City, aim to ensure long-term sustainability and profitability. This move places Cedar among several digital health startups conducting workforce reductions amid a broader market downturn, despite having raised significant venture capital, including a $200 million Series D round in early 2021.

Boston-based foodtech company Motif FoodWorks conducted a round of layoffs in July 2022 as part of a restructuring, citing the need to pivot focus toward key priorities with maximum return on investment amid challenging economic conditions. While the exact number of employees affected was not disclosed, the company indicated it would tighten its workforce in certain areas while continuing to invest in high-demand food-tech ingredients and finished products. Motif, which had raised $345 million since its 2019 spin-off from Ginkgo BioWorks, specializes in developing plant-based alternatives for meat and dairy, leveraging technologies like HEMAMI for flavor and APPETEX for texture. The layoffs reflect a strategic shift to streamline operations and concentrate resources on core innovations in the competitive alternative protein industry.

Remote, a global HR technology startup often associated with Portugal due to its Portuguese co-founder, is laying off about 100 employees, representing 9% of its 1,028-person workforce. This move, affecting staff including those in Portugal, marks a notable instance of the economic downturn impacting tech startups in the region. The layoffs reflect broader challenges within the technology sector as companies adjust to shifting market conditions.

Data analytics startup SQream laid off 30 employees in July 2022, representing over 15% of its then 170-person workforce, with most cuts occurring in Israel. The company, founded in 2010, stated the layoffs were necessary to achieve a balanced bottom line and adapt to a challenging financial climate, reducing reliance on external funding. Facing competition from giants like Snowflake, Amazon, and Oracle, SQream aimed to focus on revenue generation from new and existing clients despite having a significant order pipeline. This move followed its acquisition of Panoply for an estimated $60-70 million in late 2021.

Thimble laid off 20 employees representing approximately 33% of its workforce on 2022-07-05.

Israeli AI transcription unicorn Verbit is laying off approximately 80 employees, representing 10% of its workforce, as part of an organizational restructuring aimed at accelerating its path to profitability. The layoffs, announced in July 2022, will affect mostly U.S.-based staff, with 30 employees in Israel also departing. This move comes just eight months after the company secured a $250 million funding round at a $2 billion valuation. CEO Tom Livne cited the need to adapt after a period of "hypergrowth," which included a fivefold increase in staff and six acquisitions over 18 months. The restructuring into business divisions is intended to eliminate redundancies from those acquisitions while positioning the company, which had reached $100 million in annual recurring revenue, for continued growth and future acquisitions in the competitive tech and accessibility industry.

Transmit Security, a cybersecurity unicorn, recently laid off 27 employees, primarily in marketing and sales development roles, representing about 7% of its 400-person workforce. Seven of those affected were based in Israel. The layoffs, part of an organizational restructuring, occurred around July 5, 2022, as the company adjusted its operations in the competitive tech startup landscape.

Outschool, a $3 billion-valued marketplace for virtual after-school programs, laid off 31 employees, representing 18% of its workforce, in June 2022. The company, which had grown rapidly to 164 employees after raising multiple funding rounds in a short period, cited shifting market conditions as the reason. CEO Amir Nathoo stated the move was a defensive measure to optimize operations, impacting all teams including leadership. Despite the layoffs, the company asserted it maintains over three years of financial runway. This event highlights the challenges faced by growth-stage edtech startups in adapting to changing economic environments.

Event planning platform Bizzabo laid off 120 employees, representing nearly 30% of its 400-person workforce, in July 2022. The company cited market uncertainty and the need to prepare for an extended business downturn as reasons for the restructuring, aimed at improving profitability. This decision followed a period of rapid growth through acquisitions. Bizzabo, which had raised significant venture capital, provided enhanced severance and support services to the affected staff.

Celsius, an American-Israeli cryptocurrency lending platform, is laying off approximately 150 employees, which represents about a quarter of its workforce. This significant staff reduction comes as the company grapples with a severe financial crisis, having paused all customer withdrawals three weeks prior due to extreme market conditions. The layoffs, occurring in early July 2022, are part of broader organizational changes as Celsius has hired restructuring consultants to explore options, including strategic transactions and liability restructuring, in an effort to stabilize its operations and liquidity.

LetsGetChecked on 2022-07-02.

On July 1, 2022, Teleport, a cybersecurity infrastructure company, laid off 15 employees, representing just over 6% of its 230-person workforce. CEO Ev Kontsevoy cited the need to increase efficiency amid changing economic conditions and macroeconomic headwinds. The reductions primarily affected the Sales, Customer Support, and in-house recruiting teams as part of a strategic realignment to focus resources on core growth areas. Despite the layoffs, Teleport emphasized it remains well-capitalized, is not in a hiring freeze, and continues to innovate, offering severance and healthcare benefits to those impacted.

WanderJaunt, a San Francisco-based short-term rental property management startup, ceased all operations on June 30, 2022, citing adverse economic conditions. The closure resulted in approximately 85 employees being laid off, effectively the entire workforce. Founded in 2016, the company had raised over $25 million in venture capital and operated in eight U.S. markets, managing properties for travelers and homeowners. A recorded message informed customers of the shutdown, advising those with future bookings to seek refunds directly through their booking platforms or credit card companies. This marked a full wind-down for the venture-backed hospitality firm.

Electric-vehicle startup Canoo has laid off 58 employees this year, representing about 6% of its roughly 940-person workforce, as it approaches its vehicle production deadline. The cuts, confirmed by the company, affected departments such as talent acquisition, marketing, and engineering, with the company stating it's a strategic move to reallocate resources toward manufacturing and production roles. Amid relocating its headquarters to Arkansas and aiming to start production of its lifestyle vehicles this year, Canoo faces uncertainty, with potential delays in its Arkansas and Oklahoma production timelines and ongoing hiring efforts despite the layoffs.

Stream, a company in the technology industry, has laid off a portion of its workforce. The exact number of employees affected and the percentage relative to the total employee count are not specified in the available information. The layoffs appear to be part of a broader restructuring or strategic adjustment, though the specific reason and context are not detailed. The date of the event is also not provided. As a technology firm, Stream operates at a scale that supports its platform services, but further details on company size are unavailable. This move reflects ongoing challenges or shifts within the tech sector.

Nate laid off 30 employees representing approximately 20% of its workforce on 2022-06-30.

Sundae, a San Francisco-based real estate technology startup, laid off 15% of its workforce in mid-June 2022. While the exact number of affected employees wasn't disclosed, the company had approximately 180 employees as of July 2021, suggesting around 27 people were let go. The layoffs primarily impacted staff in the company's newest markets. CEO Josh Stech cited the need to ensure the company's long-term future, acknowledging "slower than expected growth" in late 2021. Despite recently expanding to 20 markets and having raised significant venture capital, the fast-growing proptech firm made this difficult decision to adjust its operations amid changing market conditions.

Gavelytics, a seven-year-old legal tech startup specializing in litigation analytics, is shutting down on June 30, resulting in layoffs for its entire team. The company, which had raised a total of $5.7 million in funding, was unable to secure sufficient financing to continue operations despite its innovative products and client base that included major law firms and insurance companies. Founder and CEO Rick Merrill cited the inability to grow the business fast enough as the primary reason for the closure. The company, which pioneered state court analytics and expanded to cover multiple states and millions of litigation briefs, will cease operations, marking the end of its efforts in the legal technology industry.

Stash Financial laid off 40 employees representing approximately 8% of its workforce on 2022-06-30.

In June 2022, cybersecurity company Snyk laid off approximately 5% of its global workforce as part of organizational restructuring aimed at improving operational efficiency and balancing profitability with growth amid economic headwinds. The layoffs followed a period of rapid expansion where the company tripled its team size and acquired multiple companies. Snyk, which provides a developer security platform, stated the changes were necessary to sharpen focus, better meet customer needs, and ensure long-term success in a shifting market environment.

Enjoy Technology, a Palo Alto-based mobile retail startup founded by former Apple executive Ron Johnson, has filed for Chapter 11 bankruptcy and is laying off over 400 employees in the U.K., representing about 18% of its workforce. The company, which went public via a SPAC merger less than a year ago, cited a rapidly declining cash position that left it unable to cover operating expenses like payroll. Enjoy, which had raised significant venture funding, is selling itself to Asurion LLC and plans to continue operating during bankruptcy proceedings. This situation reflects broader challenges among companies that went public through SPACs, with many facing delisting risks due to low stock prices.

Abra laid off 12 employees representing approximately 5% of its workforce on 2022-06-30.

Unity laid off 200 employees representing approximately 4% of its workforce on 2022-06-29.

Parallel Wireless laid off 60 employees on 2022-06-29.

Qumulo laid off 80 employees representing approximately 19% of its workforce on 2022-06-29.

Baton laid off 16 employees representing approximately 25% of its workforce on 2022-06-29.

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.

Substack laid off 13 employees representing approximately 14% of its workforce on 2022-06-29.

HomeLight, a real estate technology company, announced a workforce reduction to ensure its long-term financial sustainability and ability to operate independently. The layoffs, which occurred today, are part of a broader effort to scale the business responsibly. While the exact number of employees affected and the total company size were not disclosed in the post, the company emphasized providing severance, healthcare, and job support to those impacted. HomeLight expressed gratitude for the departing team members' contributions to its mission of simplifying real estate.

Degreed, an enterprise learning platform company, announced a difficult workforce reduction. While the exact number of employees laid off was not specified in the CEO's statement, the decision was made to refocus the organization on future opportunities, necessitating a change in how work is done. The layoffs occurred on the date of the post, approximately three years ago. The company, operating in the EdTech industry, expressed deep respect for the impacted colleagues and committed to supporting their transition, with the CEO emphasizing a strong belief in Degreed's future despite the challenging restructuring.

Property manager AvantStay, a short-term rental company in the travel industry with around 600 employees, confirmed a net reduction of 19 staff over the past month. This resulted from 43 job cuts, which the company described as part of a "gradual reorganization" rather than traditional layoffs, offset by some hiring during the period. The announcement was made on a Friday, indicating the changes occurred within the prior 30 days.

Niantic laid off 85 employees representing approximately 8% of its workforce on 2022-06-29.

In November 2022, StockX conducted its second round of layoffs within four months, affecting under 80 employees, which represents about five percent of its workforce. The Detroit-based sneaker and streetwear resale marketplace cited the challenges of scaling its business amid a struggling global economy as the reason for the cuts. All impacted employees held corporate roles and received severance packages along with extended benefits. Despite this restructuring, StockX noted it would continue hiring in certain areas, such as brand reputation and customer support, entering its peak season. This followed a larger layoff in June 2022, when eight percent of employees were let go.

Tesla laid off nearly 200 employees from its Autopilot team, who were involved in training the company's AI, as part of a restructuring effort.

Cue laid off 170 employees on 2022-06-27.

AppLovin laid off 300 employees representing approximately 12% of its workforce on 2022-06-27.

SafeGraph, a geospatial data company, has laid off approximately 25% of its workforce as part of a broader effort to reduce cash burn and extend its financial runway. The decision, made in the context of a challenging economic environment for tech companies, was described as incredibly difficult by leadership, who emphasized the talent and dedication of the affected employees. The layoffs reflect a strategic shift to conserve capital, as the company aims to position itself to act on future growth opportunities when market conditions improve. This move highlights the broader deflationary pressures within the tech industry, where companies are prioritizing financial sustainability.

UiPath, a leading provider of automation software, is laying off approximately 5% of its workforce, affecting about 210 employees out of a total of 4,200 as of April 30, 2022. The company's board approved the restructuring on June 24, 2023, with most cuts expected by the end of July, aiming to increase profits and streamline its go-to-market organization. This move, estimated to cost $15 million in severance, reflects a strategic shift toward sustained, profitable growth under new senior management, despite recent positive earnings. The layoffs are not attributed to market conditions but to internal prioritization for higher sales productivity and better market segmentation.

In June 2022, fintech unicorn Amount laid off 18% of its workforce, affecting approximately 72 employees based on its reported total of 400 staff. The company, valued at over $1 billion in 2021 and spun out from online lender Avant, cited the challenging macroeconomic environment as the reason for these proactive adjustments to ensure long-term health. Operating in the enterprise software sector for banking, Amount helps financial institutions digitize their infrastructure rapidly. Despite significant funding and partnerships with major banks, the firm took this step to navigate economic uncertainties and sustain future growth.

Postscript, a marketing automation platform for e-commerce brands, laid off approximately 20 employees in January 2024, representing about 10% of its workforce at the time. The company, operating in the competitive SaaS and e-commerce technology industry, cited a strategic restructuring to improve operational efficiency and focus on long-term profitability. This move was part of a broader trend of workforce adjustments in the tech sector as companies navigated economic uncertainties.