Layoffs in United States

Tesla announced layoffs on June 3, 2022, cutting 10% of its salaried workforce, which translates to nearly 10,000 employees based on its global headcount of 99,290 at the end of 2021. CEO Elon Musk cited overstaffing and a "super bad feeling" about the economy as reasons, while clarifying that production workers would not be affected and hourly staffing would increase. The news triggered an 8-9% drop in Tesla's stock and drew a pointed response from President Joe Biden, who contrasted the cuts with investments by Ford and Stellantis in electric vehicles. As a major player in the automotive and clean energy industry, Tesla's move reflects broader economic uncertainties and strategic adjustments in scaling its operations.

Superhuman, a premium email app startup backed by Tiger Global, laid off 22% of its workforce, affecting 23 employees, on June 3, 2022. This reduction comes just a month after the company launched its long-awaited integration with Microsoft Outlook, a move aimed at expanding its user base beyond Gmail. Despite raising $126 million and reaching an $825 million valuation, the company is part of a broader wave of tech layoffs driven by shifting venture capital investment and efforts to control spending. The layoffs raise questions about the immediate impact of the Outlook launch, though Superhuman offered affected staff severance and support services.

Clubhouse on 2022-06-03.

Food52, a food and home goods publisher, laid off 21 employees on Thursday, representing about 15% of its total staff. This marks the company's second round of cuts in two months, following 20 layoffs in April attributed to internal reorganization. The latest reductions primarily affected the editorial team, which now has 15 members, while remaining editorial and some creative staff have moved to 32-hour workweeks with full-time benefits.

Gemini laid off 100 employees representing approximately 10% of its workforce on 2022-06-02.

Insurtech company Policygenius laid off approximately 25% of its workforce, affecting an estimated 170 employees, in early June 2022. This significant reduction came less than three months after the firm raised $125 million in a Series E funding round. CEO Jennifer Fitzgerald cited the sudden and dramatic economic shift as the reason, stating the company needed to adapt its strategy. Policygenius, which operates an online platform for comparing and purchasing insurance, had reported strong growth in its home and auto insurance segments prior to the layoffs. The company, positioned as a tech-enabled brokerage, stated it would continue to invest in its core insurance businesses despite the workforce reduction.

Esme Learning on 2022-06-02.

Supply-chain technology startup Stord laid off 59 employees, representing about 8% of its 700-person workforce, on June 2, 2022. This move came as a shock to many, occurring less than a month after the company announced $120 million in new Series D funding and a $1.3 billion valuation. Leadership attributed the layoffs to having hired too quickly, despite previously stating the new capital was a "war chest" to weather tough times. The company, which provides a cloud-based logistics platform connecting warehouses and offering fulfillment services, emphasized it remains in a strong financial position with record revenue growth. This event reflects broader economic pressures and a wave of layoffs impacting the tech and supply-chain sectors.

In June 2022, social app company IRL laid off approximately 25 employees, representing 25% of its team. The layoffs were attributed to broader market dynamics and a strategic decision to right-size the workforce after the company had rapidly expanded its headcount by 3.5 times the previous year. Despite the cuts, CEO Abraham Shafi stated that IRL had sufficient cash reserves to last well into 2024. The company, which had achieved unicorn status a year earlier following a $170 million Series C funding round led by SoftBank, framed the move as a necessary step toward building a more disciplined and impactful organization, emphasizing adaptability in a challenging economic climate.

Gather laid off 30 employees representing approximately 33% of its workforce on 2022-06-02.

Carbon Health laid off 250 employees representing approximately 8% of its workforce on 2022-06-02.

In June 2022, enterprise video messaging startup Loom laid off 34 employees, representing 14% of its workforce. The company, which had reached a $1.53 billion valuation and unicorn status a year prior, cited the need to operate more sustainably amid increased economic uncertainty. This move impacted teams across product and people operations. Like other remote-work beneficiaries during the pandemic, Loom saw rapid growth but later adjusted its strategy to ensure long-term viability. The Andreessen Horowitz-backed firm, serving millions of users globally, emphasized support for affected employees through severance and career assistance while expressing confidence in its future path.

Cannabis delivery and retail startup Eaze laid off approximately 25 employees on June 1, 2022, as part of ongoing restructuring efforts following its acquisition of Green Dragon earlier in January. The cuts, which affected engineering and live operations teams, aim to increase efficiencies within the merged company amid a maturing and competitive cannabis market. This follows previous layoffs in February and October, reflecting the company's strategic pivot from solely delivery to also operating its own dispensaries. Eaze, which operates in California, Colorado, Michigan, and Florida, continues to navigate industry pressures and executive turnover while focusing on long-term growth.

Cybereason, an Israeli cybersecurity company, is laying off approximately 100 employees, affecting staff in its headquarters in Israel as well as offices in the U.S. and Europe. This reduction impacts about 6.7% of its global workforce of 1,500. The layoffs, reported in June 2022, come as the company, backed by investors like SoftBank's Vision Fund 2, had confidentially filed for a U.S. IPO earlier that year, aiming for a valuation exceeding $5 billion. Operating in the competitive cybersecurity industry, Cybereason provides AI-driven software for threat detection and ransomware protection. The move appears to be part of broader strategic adjustments within the tech sector, possibly to streamline operations ahead of its planned public offering.

San Francisco-based real estate tech startup Side laid off approximately 10% of its workforce in early June 2022, citing over-expansion and market volatility. The company, which had been on an IPO track after raising over $250 million and reaching a $2.5 billion valuation, admitted it grew faster than it could train and support new hires. Facing economic shifts and rising mortgage rates, Side made the strategic cut to prepare for potential short-term impacts while maintaining services for its agent partners. This move followed a period of rapid growth, including expansion into 15 new states in 2021 and more than doubled revenue.

Real estate home-loan startup Tomo laid off 44 employees, representing almost a third of its roughly 150-person workforce, on Tuesday. The company, which had raised $110 million in venture capital over the past year, is halting expansion plans due to deteriorating market conditions. The layoffs are part of a broader wave in the mortgage industry, driven by soaring interest rates and a cooling housing market, which have slowed loan volumes and tightened venture capital funding.

Cerebral on 2022-05-31.

On May 31, 2022, Replicated, a company in the enterprise software industry, laid off 50 employees from its Sales, Marketing, Customer Success, and G/A teams. The CEO, Grant Miller, took responsibility for the decision, citing over-hiring in pursuit of aggressive growth as the primary reason. This restructuring aims to shift the company toward efficient growth and achieve profitability within 18-24 months, extending its financial runway to over three years. The layoffs were part of a broader adjustment to refocus on customers and product execution, ensuring long-term sustainability for its enterprise distribution tools.

Akerna on 2022-05-27.

Terminus on 2022-05-27.

Lacework, a cloud security company, laid off approximately 20% of its workforce in May 2024, affecting around 200 employees. This significant reduction was part of a broader restructuring effort aimed at streamlining operations and achieving profitability. The layoffs occurred as the company, which had grown to about 1,000 employees, faced increased market competition and pressure to optimize costs in the cybersecurity industry. This move reflects ongoing challenges in the tech sector, where many firms are adjusting their strategies to navigate economic uncertainties and focus on sustainable growth.

Coterie Insurance laid off 30 employees representing approximately 20% of its workforce on 2022-05-25.

Bolt laid off 240 employees representing approximately 27% of its workforce on 2022-05-25.

The Zebra laid off 40 employees on 2022-05-24.

ClickUp laid off 60 employees representing approximately 7% of its workforce on 2022-05-23.

On May 20, 2022, smart access and security company Latch, Inc. announced a workforce reduction affecting approximately 130 employees, which represents about 28% of its full-time staff. The company, which provides a full-building enterprise SaaS platform, stated the layoffs were necessary to better align its staffing and expenses with current sales volumes and the challenging macroeconomic environment, citing ongoing construction delays and supply chain issues. This move is part of a broader reorganization of its sales, marketing, and product departments aimed at accelerating the path to profitability and achieving self-sustaining free cash flow. Latch expects the restructuring to result in significant annual cost savings and anticipates incurring related cash charges in the second quarter of 2022.

Outside Inc., a media company that bundles 36 publishers including titles like Outside Magazine, Backpacker, and Ski, laid off approximately 15% of its workforce, affecting 85 to 90 employees out of a total of 580. The layoffs, announced on Friday, are part of a restructuring to transition into a primarily digital company, driven by a softening advertising market and an ambitious expansion during the pandemic era. As part of this shift, the company will phase out three print titles—Beta, Peloton, and Oxygen—over the next six months and reduce the print frequency of most other publications to just one or two special issues per year, with the exception of its flagship Outside Magazine.

Skillz, a mobile gaming platform, conducted layoffs in May 2022 as part of a broader wave of tech workforce reductions. The company laid off approximately 10% of its employees, which amounted to around 70 people from its total workforce of roughly 700. This move was attributed to challenging market conditions and a strategic shift to focus on profitability amid slowing growth. The layoffs reflect the wider industry trend at the time, where many tech companies, both public and private, were adjusting their strategies due to economic pressures. Skillz, operating in the competitive gaming industry, aimed to streamline operations to navigate the uncertain market environment.

Netflix is laying off approximately 150 employees, representing less than 2% of its 11,000-person workforce, with most cuts occurring in the U.S. The layoffs, confirmed in May 2022, are a direct response to the company's slowing revenue growth and its first subscriber loss in a decade, as reported the prior month. To manage costs, Netflix is implementing these reductions, which are driven by business needs rather than individual performance. The streaming giant, a major player in the technology and entertainment industry, is also exploring new strategies like ad-supported tiers and cracking down on password sharing to reignite growth. These cuts reflect a broader trend of contraction within the tech sector.

Picsart laid off 90 employees representing approximately 8% of its workforce on 2022-05-17.

Zulily on 2022-05-16.

Thirty Madison laid off 24 employees on 2022-05-14.

CommonBond, a financial technology company, laid off 22 employees as part of a strategic shift to focus exclusively on solar financing, ceasing its student loan origination business. The layoffs, announced in a LinkedIn post by CEO David Klein, were a direct result of this business model pivot. While the exact total workforce and percentage affected were not disclosed, the move underscores the company's redirection towards the renewable energy sector, where its solar business had become its largest and fastest-growing segment. The transition was effective as of the announcement, with student loan operations winding down by June 15.

Subspace, a technology startup focused on improving internet connectivity for data-rich applications, announced the shutdown of its global network and business operations on May 13, 2022. The closure effectively resulted in layoffs for its entire team, as the company ceased all activities. Founded in 2018 and launching service in March 2020, Subspace aimed to support low-latency needs for emerging sectors like web 3.0 and the Metaverse. However, shifting market conditions and financial constraints made it impossible to scale and meet customer demands, forcing the company to wind down.

Tripwire on 2022-05-12.

Zwift, a leading virtual cycling and running platform, announced significant layoffs on May 12, 2022, affecting approximately 150 employees. This workforce reduction, impacting various divisions, was part of a broader restructuring to "right-size the business." The company simultaneously canceled its plans to launch a smart bike and trainer hardware, citing the challenging macroeconomic environment and the normalization of indoor cycling sales. This strategic shift away from hardware development, which Zwift described as a "pause," led to the downsizing, particularly within the hardware division. The move aligns with similar cost-cutting measures recently taken by competitors like Wahoo and Peloton in the connected fitness industry.

In May 2022, Scott Galloway's edtech startup Section4 laid off 32 employees, representing a quarter of its staff. The company, which had 142 employees at the time, conducted the layoffs across all teams, with a significant impact on the product department. The restructuring was driven by financial mismanagement, a lack of product-market fit, and over-hiring, as the company struggled with consumer growth. Section4, which offers affordable, virtual business school-style courses, shifted its focus toward enterprise clients, citing the high production costs of its core offerings. The layoffs were part of a broader post-pandemic reset in the tech industry.

DataRobot laid off 70 employees representing approximately 7% of its workforce on 2022-05-11.

Latch, a smart access technology company, laid off employees in May 2022 as part of a broader wave of tech industry cutbacks. While the exact number of affected employees at Latch was not specified in this report, the layoffs occurred during a period of widespread workforce reductions across startups and tech firms, driven by economic recalibration and strategic shifts. The company, operating in the proptech industry, was adjusting to market pressures that prompted many businesses to streamline operations. This move reflects the challenging environment for tech companies at the time, as they navigated funding changes and evolving business priorities to ensure sustainability.

On May 10, 2022, the U.S. used-car retailer Carvana announced it would lay off 2,500 employees, a significant workforce reduction as the company grapples with severe overcapacity and mounting financial losses. The layoffs, part of a plan to realign staffing and expenses with declining sales volumes, come after Carvana reported a net loss of $506 million in the first quarter of 2022, despite a 56% revenue increase. The company had expanded its operations anticipating higher demand, but faced with a sharp downturn, it is now cutting roughly 12% of its workforce. Carvana's executive team is forgoing salaries for the remainder of the year to help fund severance packages, which include four weeks of pay plus additional compensation based on tenure.

Doma, a title insurance and technology company, laid off 310 employees, representing 15% of its workforce, in May 2022. This reduction, primarily affecting fulfillment roles, was a direct response to a severe downturn in the mortgage market, particularly a 63% industry-wide drop in refinance transactions. Despite gaining market share, Doma reported a significant net loss of $50 million in Q1 2022, with revenue declining 12% year-over-year. The company is now refocusing resources on purchase transactions and its technology platform to achieve profitability by 2023 amid ongoing market challenges.

Vroom laid off 270 employees representing approximately 14% of its workforce on 2022-05-09.

divvyDOSE laid off 62 employees on 2022-05-06.

Reef Technology, a Miami-based tech company specializing in ghost kitchens and parking management, is laying off 750 employees, which represents 5% of its global workforce. This decision, announced in a letter from CEO Ari Ojalvo, is part of a strategic shift to focus on profitability amid economic challenges, including rising inflation and disruptions in its sectors. The company will concentrate on its core businesses—ghost kitchens and parking—while scaling back other ventures like health clinics and vertical farms. Founded in 2013 and backed by significant investments, including from SoftBank, Reef has faced operational hurdles but continues to pursue growth with a renewed emphasis on brick-and-mortar locations.

On Deck, a tech company that connects founders with capital and advice, laid off 72 employees, representing 25% of its staff, on May 5, 2022. The cuts primarily affected operations and investing roles, with severance packages including eight weeks of salary and 12 weeks of healthcare. Co-founders confirmed the layoffs, citing a need to support departing team members and refocus the business. The company, which launched in 2019 and had raised a $20 million Series A in 2021, faced financial pressures from missed sales targets, aggressive hiring, and a reduced fundraise—originally targeting $100-$150 million but landing around $40 million. As a result, On Deck is scaling back its ODX accelerator program and aims to extend its runway, which was down to nine months prior to the cuts.

Progrexion, a Salt Lake City-based credit report repair company owned by private equity firm H.I.G. Capital, laid off over 100 employees in May 2023. The cuts affected multiple departments, though the exact percentage of the workforce impacted remains unclear. Operating in the financial services and technology sector, Progrexion, which owns brands like Credit.com and CreditRepair.com, conducted these layoffs amidst a broader trend of workforce reductions across U.S. tech and financial companies. This move reflects the challenging market environment many firms faced in early 2023, following a period of rapid hiring and growth in previous years.

Ideoclick laid off 40 employees on 2022-05-04.

B2B financial services startup MainStreet laid off approximately 50 employees, representing about one-third of its roughly 150-person workforce. The cuts, announced in early May 2022, were driven by difficult market conditions and a strategic push toward profitability. CEO Doug Ludlow cited an "incredibly rough market" that could worsen, prompting the restructuring to ensure the company's self-sustainability. MainStreet, which grew rapidly after a $60 million Series A funding round in 2021, faced challenges as revenue growth failed to match its increased spending and headcount, exacerbated by market turbulence following Russia's invasion of Ukraine.

Cameo laid off 87 employees representing approximately 25% of its workforce on 2022-05-04.

Vise laid off 25 employees on 2022-05-04.