Layoffs in United States

PeerStreet, a Los Angeles-based fintech startup that operates a crowdfunding platform for real estate loans, laid off over 50 employees yesterday, representing 30% of its workforce. The cuts impacted all departments, making it one of the first notable fintech layoffs following the COVID-19 pandemic. This move reflects broader economic pressures affecting the tech and real estate investment sectors, as the company adjusts its operations in a shifting market environment.

Iris Nova, a direct-to-consumer beverage startup backed by Coca-Cola, laid off half of its workforce in late March 2020 as the COVID-19 pandemic severely impacted its retail and wholesale operations. The company, known for brands like Dirty Lemon, let go nine employees, which represented 50% of its staff at the time. This drastic cut was a direct response to the near-total collapse of its brick-and-mortar and hospitality partnerships, which had constituted nearly half of its business, following widespread shutdowns of non-essential businesses. While the company's direct-to-consumer sales via text messaging surged during the pandemic, the sudden loss of revenue from retail channels forced this restructuring to focus resources on its core DTC delivery model.

Polarr, a photo editing software company, laid off an unspecified number of employees in late March 2020, as detailed by founder Derek Yan in a personal blog post. The layoffs occurred during the week of March 23rd, which Yan described as the most difficult week of his professional career, driven by the economic pressures and uncertainty of the early COVID-19 pandemic. While the exact scale, percentage of workforce affected, and total employee count were not disclosed, the event was framed within the broader tech industry's challenges during the global crisis, impacting the small to mid-sized company. Yan reflected on the emotional difficulty of the decision, drawing parallels to past layoffs he witnessed at General Motors and Altera.

Amplero laid off 17 employees representing approximately 100% of its workforce on 2020-03-29.

ZipRecruiter laid off 400 employees representing approximately 39% of its workforce on 2020-03-29.

WeWork laid off 250 employees on 2020-03-28.

Rent the Runway, a popular online clothing rental company, laid off its entire retail workforce in late March 2020 due to the severe uncertainty caused by the coronavirus pandemic. The company, which operates physical stores in several major U.S. cities, was forced to close all locations as government restrictions were enacted. During a brief Zoom call, executives stated the business needed to dramatically reassess operations to survive, eliminating all retail roles as there was no visibility into when stores could reopen. This heartbreaking decision impacted the company's brick-and-mortar employees, who were immediately cut off from company systems. The affected staff received their final paychecks, severance, and extended health benefits as the fashion rental industry grappled with the unprecedented crisis.

In March 2020, Vancouver-based FinTech startup Bench laid off 47 employees, representing 10% of its then 460-person workforce, due to a severe pandemic-driven sales drop. The company restructured financially, cutting executive pay and pivoting to help U.S. small businesses secure PPP loans. This shift doubled sales, allowing Bench to rehire 17 of the laid-off staff and hire 52 new employees by mid-June. Operating in the financial technology industry, Bench, founded in 2013 and backed by $53 million in venture funding, automates accounting for small businesses.

Blueground, an apartment rental startup in the real estate industry, laid off 130 employees last week, representing 25% of its workforce. The cuts primarily affected business roles across major U.S. cities including New York, San Francisco, Los Angeles, and Chicago. This move aligns with broader trends among real estate startups facing operational challenges during the coronavirus pandemic.

ThirdLove, a direct-to-consumer lingerie brand, laid off an unspecified number of employees in March 2020 as part of broader workforce reductions during the COVID-19 pandemic. The layoffs were driven by the severe economic downturn and shifting consumer behavior, which heavily impacted retail and e-commerce sectors. While the exact number of affected employees and the percentage relative to the total workforce were not detailed in the provided content, the cuts reflect the widespread financial pressures companies faced during the early stages of the global health crisis. ThirdLove, known for its online-focused business model and inclusive sizing, was among many retail brands forced to restructure operations to navigate the unprecedented market challenges.

Bevi laid off 30 employees representing approximately 20% of its workforce on 2020-03-27.

Getaround laid off 100 employees representing approximately 25% of its workforce on 2020-03-27.

Pivot3, a hyperconverged infrastructure startup, conducted significant layoffs in late March 2020 as a cost-cutting measure in response to the COVID-19 pandemic. The company cited extraordinary economic strains, with customer timelines slipping and decisions suspended due to the global slowdown. While the exact number of employees affected was not disclosed, reports indicated mass layoffs at the firm, which had around 250 employees listed on LinkedIn at the time. Operating in the competitive IT infrastructure industry, Pivot3 aimed to preserve resources and maintain support for mission-critical customer deployments amid uncertain market conditions.

DataRobot laid off 200 employees on 2020-03-27.

Flexible workspace provider Knotel has laid off or furloughed half of its 400 global employees as it restructures to endure the coronavirus pandemic's severe economic impact. On March 27, 2020, the company cut 30% of its staff (127 employees) and furloughed an additional 20% (68 employees), with the reductions evenly spread across all 17 markets, including major hubs like New York and London. CEO Amol Sarva cited the crisis as a fundamental shift, noting that over 80% of clients had shifted to remote work, prompting Knotel to pivot its 5 million square feet of leased space for potential government emergency use. This move followed an earlier round of layoffs in January, reflecting the profound challenges facing the commercial real estate and flexible office industry during the outbreak.

Restaurant365, an Irvine, California-based provider of cloud-based software for the restaurant and hospitality industry, conducted a significant layoff this week, affecting a substantial portion of its workforce. While the company did not disclose the exact number, CEO Tony Smith indicated it was "a big chunk" but not half of the staff, which previously totaled about 400 employees. The layoffs, which included sales staff and others, were driven by a severe downturn in the restaurant industry due to COVID-19, with the company reporting a 75% year-over-year decline in customer sales. As restaurants close or scale back, demand for Restaurant365's accounting, inventory, and scheduling software has plummeted, forcing the company to reduce its headcount to sustain operations. The notifications were delivered via live video conference, reflecting the difficult circumstances faced by the industry.

Opal laid off 20 employees on 2020-03-27.

In January, amidst the ongoing challenges of the COVID-19 pandemic, Bird, an electric scooter company based in Los Angeles, laid off 406 employees, representing 30% of its workforce across all departments. The company, which had already paused services in numerous markets due to the pandemic, is part of an industry severely impacted by reduced urban mobility and economic uncertainty. This move reflects broader struggles within the scooter-sharing sector, as competitors like Lime also implemented significant layoffs during this period.

DISCO laid off 75 employees on 2020-03-27.

Zipcar, the car-sharing service, laid off hundreds of employees last week, representing 20% of its total workforce. The cuts impacted all departments but were notably concentrated in engineering, product, and design roles. This significant reduction is part of broader restructuring efforts within the mobility and rental industry as companies navigate shifting market demands. Based in Boston, Zipcar operates as a mid-to-large scale company in the transportation and technology sector.

Everlane, the clothing retailer known for its "radical transparency" and ethical branding, has conducted significant layoffs amid the COVID-19 pandemic, despite earlier assurances to staff about the company's strength. The layoffs affected 42 out of 57 remote "customer experience" workers who were unionizing, along with 180 part-time retail employees, while 68 full-time retail staff were furloughed. Additionally, eight temporary workers were laid off with minimal notice. CEO Michael Preysman cited depressed online sales and store closures as reasons, taking a zero salary himself while senior leadership reduced theirs by 25%. The layoffs occurred in early 2020, impacting the retail industry, with Everlane operating as a mid-scale ethical fashion brand.

Oh My Green laid off 40 employees on 2020-03-27.

Make School on 2020-03-27.

GoSpotCheck laid off 23 employees representing approximately 20% of its workforce on 2020-03-26.

Peerspace laid off 41 employees representing approximately 75% of its workforce on 2020-03-26.

Passport laid off 44 employees on 2020-03-26.

In March 2020, retail-as-a-service company B8ta laid off over half of its corporate workforce, affecting approximately 250 employees, as the COVID-19 pandemic severely disrupted the retail industry. The company also furloughed its store associates and implemented pay cuts for remaining staff. This drastic restructuring was aimed at preserving the business amid widespread store closures and shifting consumer spending. B8ta, which had recently expanded into fashion and lifestyle and secured significant funding, faced the same challenges as many retailers during the outbreak, highlighting the pandemic's brutal impact on non-essential retail sectors.

Clever Real Estate on 2020-03-25.

O'Reilly Media, a prominent publisher and conference organizer in the tech industry, laid off 75 employees on March 24, 2020, representing 15% of its then 500-person workforce. The company permanently shut down its in-person events business, citing the severe disruption caused by the COVID-19 pandemic, which forced the cancellation of major conferences like Strata. While the pandemic accelerated the decision, the events division had reportedly been struggling financially and missed targets prior to the outbreak. The layoffs primarily affected the conferences team but also extended to other roles, including editors, engineers, and several vice presidents. O'Reilly, known for its programming books and online learning platform serving thousands of companies, will now focus on its digital content and learning services.

Overtime laid off 30 employees representing approximately 23% of its workforce on 2020-03-25.

Lyric, an Airbnb-backed hospitality startup, is drastically downsizing due to the coronavirus pandemic's devastating impact on travel. In late March 2020, the company informed approximately 80 out of its 100 remaining employees—or 80% of its staff—that their jobs could not be guaranteed if the economic environment did not improve within two months. This followed a previous layoff of about 20% of its workforce in February. The San Francisco-based company, which had been operating nearly 600 furnished rental units across 14 cities, also plans to abandon most of its leased properties, retaining only a core location in New York City. The global health crisis caused a standstill in travel, leading to missed revenue targets and forcing severe operational cuts across the hospitality industry.

Jama laid off 12 employees representing approximately 5% of its workforce on 2020-03-25.

Clutter, an on-demand storage and moving company, laid off approximately 100 employees in early 2020, representing around 10% of its workforce at the time. The layoffs were part of a restructuring effort amid the COVID-19 pandemic, which significantly impacted the logistics and moving industry. Based in Los Angeles, Clutter was a venture-backed startup operating in the tech-enabled home services sector. The cuts were aimed at extending the company's financial runway and adapting to changing market conditions during the economic uncertainty.

TripActions, a Palo Alto-based corporate travel management software company, laid off 300 employees last week, representing 25% of its workforce. The cuts primarily impacted customer support, recruiting, and sales departments. The company attributed the layoffs to the severe decline in business travel due to the COVID-19 pandemic. The move drew criticism for its handling, as affected employees were notified via a group Zoom call.

Universal Standard, a fashion retail startup, laid off an unspecified number of employees as part of broader cost-cutting measures during the COVID-19 pandemic. The layoffs, reported in early April 2020, were driven by the severe impact of the coronavirus outbreak, which forced non-essential retail stores to close and led to a sharp decline in consumer spending. Like many other direct-to-consumer and retail startups at the time, Universal Standard faced unprecedented challenges, prompting difficult decisions to preserve business continuity. The company, operating in the competitive apparel industry, implemented layoffs alongside other austerity measures such as reduced advertising spend and executive pay cuts, reflecting the widespread strain on the burgeoning consumer startup sector during the global health crisis.

OutboundEngine laid off 52 employees representing approximately 28% of its workforce on 2020-03-25.

WanderJaunt laid off 56 employees representing approximately 23% of its workforce on 2020-03-25.

Wonderschool, a San Francisco-based startup that enables individuals to launch home-based preschools and daycares, has laid off 50 employees, representing a significant 75% of its total workforce. The drastic cuts, affecting all departments including Engineering and Partnerships, were driven by the severe impact of COVID-19 shelter-in-place orders, which led families to keep children at home and disrupted the company's core childcare programs. This industry-wide challenge forced the company to make these reductions to navigate the unprecedented downturn.

SpotHero on 2020-03-24.

TravelBank, a corporate travel and expense management platform, conducted layoffs affecting an unspecified number of employees. The company, operating in the fintech and travel technology industry, reduced its workforce as part of broader cost-cutting measures amid challenging market conditions. While exact figures regarding the total employee count and percentage impacted are not detailed in available reports, the layoffs were confirmed through employee discussions on professional networks. This restructuring reflects ongoing pressures within the tech and travel sectors to streamline operations and improve financial sustainability.

Zeus Living, a San Francisco-based startup offering furnished monthly rentals for business travelers, laid off 80 employees, representing 30% of its workforce. The cuts, which occurred recently, impacted all departments including engineering, product, and business roles. This significant reduction highlights the ongoing challenges within the proptech and travel-related sectors, particularly for companies scaling back operations amid shifting market conditions.

Sonder, a San Francisco and Denver-based short-term apartment rental company, laid off or furloughed 400 employees, representing 33% of its workforce across all departments. The drastic cuts, driven by a 20% decline in bookings across its 5,000 apartments due to the coronavirus pandemic's impact on travel, highlight the severe challenges facing the hospitality and tech-enabled rental industry. The company, which had raised $360 million and achieved a valuation over $1 billion, was forced into this restructuring as the global health crisis decimated demand.

Foodsby laid off 87 employees representing approximately 67% of its workforce on 2020-03-24.

Takl laid off 130 employees on 2020-03-24.

Peerfit representing approximately 40% of its workforce on 2020-03-24.

The Guild laid off 38 employees representing approximately 22% of its workforce on 2020-03-23.

Leafly laid off 91 employees representing approximately 50% of its workforce on 2020-03-23.

Zwift, a sports technology company in the fitness and gaming industry, laid off a number of employees on March 20, 2020, as part of a strategic reorganization to focus on developing new hardware. While the exact number of affected employees and the total workforce size were not disclosed, the layoffs primarily impacted executive and director-level positions, including roles like VP of Running and Director of Global Business Development. Zwift emphasized that the decision was not driven by external factors like COVID-19 or financial concerns but aimed to support growth in its core subscription business and hardware development. The company provided severance packages to those laid off, maintaining that it remains financially healthy.

In late March, Compass, a real estate brokerage firm, laid off 375 employees, which represents 15% of its workforce. The layoffs affected all departments and were a direct response to the COVID-19 pandemic, which caused a significant 60% drop in property showings as people stayed home. This move reflects broader challenges in the real estate industry, with other startups like Redfin and Blueground also implementing workforce reductions during the same period.

Triplebyte, a recruiting platform that matches engineers with tech companies, has laid off 15 employees, representing 17% of its workforce. The cuts, which occurred in San Francisco, primarily affected the customer success and technical writing teams, with the talent manager role being eliminated entirely. According to a former employee, these layoffs are linked to a strategic product shift rather than the coronavirus pandemic. This restructuring follows the departure of founder Harj Taggar as CEO five months earlier, signaling ongoing changes within the company.