TransportationCA

Clutch Layoffs

June 2022

Clutch announced a layoff affecting 76 employees (22% of its workforce) in June 2022. The company operates in the Transportation sector.

People Affected

Percentage

22%

Announced Date

Jun 29, 2022

About

Online car retailer Clutch has laid off 76 employees, representing about 22% of its workforce, as part of a strategic move to slow growth and extend its financial runway amid challenging market conditions. The layoffs, which occurred on June 14, reduced the company's headcount from approximately 340 to between 260 and 270 people. CEO Dan Park cited the need to prepare for a prolonged period of economic uncertainty, influenced by broader tech industry trends and guidance from investors like Sequoia Capital. This Canadian tech startup, which secured a $100 million Series B in 2021, aims to ensure stability for the next 24 months by cutting costs and limiting hiring, despite remaining well-capitalized.