Layoff Events

Healthcare staffing startup Nomad Health conducted its third round of layoffs in less than a year last week, continuing a difficult period for the company. While the exact number of employees affected this time was not disclosed, the startup had previously cut 25% of its nonclinical staff in October 2023 and 17% of its overall workforce in February of that year. These reductions are a response to shrinking hospital budgets and a broader market downturn that has pressured the healthcare staffing sector. Nomad Health, which last raised $105 million in venture capital in June 2022, is among several peers in the industry that have been forced to downsize as funding has tightened and hospital customers face financial constraints.

Uber is laying off 168 employees in Boston this year as it prepares to shut down Drizly, the alcohol delivery service it acquired in 2021 for $1.1 billion. The layoffs, notified to the state last week, will begin in April and continue through August, following Drizly's announcement last month that it will slowly cease operations by the end of March. This move comes after Drizly, founded in 2012 and based in Boston, already laid off about 100 employees in March 2023 during its merger with Uber. The closure reflects Uber's strategy to consolidate its delivery services, redirecting Drizly customers to Uber Eats instead. The layoffs are part of the broader wind-down of Drizly, which saw a sales surge during the COVID-19 pandemic but is now being integrated into Uber's larger operations.

Snap, the parent company of Snapchat, announced layoffs on Monday, February 5, 2024, cutting approximately 500 employees, which represents about 10% of its global workforce. The social media company stated the restructuring aims to reduce hierarchy and promote in-person collaboration. This move is part of a broader trend of cost-cutting within the tech industry, following Snap's major 2022 layoffs. The company anticipates incurring related charges between $55 million and $75 million. Despite recent challenges in digital advertising, Snap had recently broken a streak of revenue declines.

Youth-focused neobanking startup Muvin has shut down its operations, resulting in layoffs for its entire team. The closure, confirmed around February 2024, was a direct consequence of a Reserve Bank of India (RBI) directive in June 2023 that prohibited UPI services in co-branding arrangements for entities without a Prepaid Payment Instrument (PPI) license. This regulatory change forced Muvin, which catered to teens and young adults with prepaid cards and an app, to discontinue its core services. The fintech startup, which had raised $3 million in a pre-Series A round in early 2022, found itself unable to operate its business model and reportedly faced challenges in securing further funding, leading to the complete wind-down of the company.

BillGO laid off 80 employees on 2024-02-05.

Meetup, the social networking platform for organizing group events, has undergone significant layoffs as part of a restructuring following its acquisition by Bending Spoons. The company's new parent company, based in Europe, decided to move operations overseas, leading to a reduction in the US-based team. While the exact number of employees affected wasn't specified, the layoff impacted a substantial portion of the staff. This decision, communicated in early 2023, was driven by the need to integrate Meetup fully into Bending Spoons and eliminate overlapping roles. Despite the cuts, Bending Spoons plans to invest $50 million into product improvements and growth, aiming to enhance event discoverability and organizer tools for the community.

Small Robot Company representing approximately 100% of its workforce on 2024-02-02.

Toronto-based EdTech company Top Hat laid off 35 employees on January 30, 2024, as part of a strategic push to become a "self-sustaining business" in its upcoming fiscal year. This represents approximately 7% of its workforce, which currently stands at 498 employees. The layoffs, based on business priorities rather than individual performance, mark the second round of downsizing for the online education firm in the past year, following a cut of 42 employees in August 2023. This move occurs amid a broader trend of Canadian tech layoffs in early 2024, as companies like Loopio and Wattpad also reduced staff to refocus on profitability in uncertain economic conditions.

Cue Health, a San Diego-based biotechnology company that experienced rapid growth during the pandemic by producing COVID-19 test kits, is laying off approximately 245 employees, representing about one-third of its global workforce. This latest round of cuts, reported in February 2024, follows several previous layoffs totaling 884 workers since June 2022, primarily affecting its San Diego operations. The company, which expanded from 99 employees in early 2020 to over 1,500 by the end of 2022, is reducing staff due to a sharp decline in demand and funding for COVID-19 testing. Cue Health aims to cut costs and improve operational efficiency as it shifts focus to expanding its test menu on its health monitoring system, with the layoffs expected to incur $5 million to $7 million in one-time expenses.

Twig representing approximately 100% of its workforce on 2024-02-02.

Swedish electric motorcycle startup Cake filed for bankruptcy on February 1, 2024, after a critical investor withdrew from a funding round, leaving the company unable to meet its financial obligations, including employee salaries. The boutique manufacturer, known for its high-design e-motorcycles and mopeds, had previously raised $74 million in venture capital. This bankruptcy reflects broader struggles within the e-mobility industry, following similar failures and consolidations among peers. The company's future remains uncertain as it seeks a potential buyer or restructuring solution.

Zoom, the video-conferencing company that surged during the pandemic, is laying off approximately 150 employees, which represents less than 2% of its total workforce. This move, confirmed in early 2024, is part of the company's regular evaluation to align teams with its strategic goals, rescoping roles to add capabilities while continuing to hire in critical areas like artificial intelligence, sales, and product development. The layoffs are not companywide and follow a broader trend of tech industry cuts aimed at efficiency, with over 100 companies reducing about 30,000 jobs to start the year. This comes after Zoom's larger reduction of around 1,300 jobs (15% of its workforce) in February 2023, driven by economic uncertainty as the company adjusts to post-pandemic shifts in remote work demand.

Identity management company Okta announced on Thursday that it is laying off 400 employees, representing approximately 7% of its workforce. CEO Todd McKinnon stated the decision was a difficult but necessary proactive measure to address high costs and achieve long-term profitable growth, emphasizing the need to run the business with greater efficiency and invest more thoughtfully. This marks the second round of layoffs in roughly a year for the tech firm, following a smaller reduction in February 2023. The announcement comes amid a wave of job cuts in the technology industry in early 2024.

Polygon Labs laid off 60 employees, about 19% of its staff, as announced by CEO Marc Boiron on Thursday. The layoffs aim to create a more efficient team with less bureaucracy, following growth during the crypto bull market. Affected employees will receive two months severance and health benefits, while remaining staff get a 15% compensation increase.

Indigo on 2024-02-01.

Polygon Labs, a major player in the blockchain and web3 industry, laid off 60 employees on February 1, 2024, representing approximately 19% of its workforce. The company's CEO cited the need to create a more efficient, agile, and focused organization as the primary reason, stating that rapid growth during the previous bull market had diluted these qualities. The decision was framed as a strategic "right-sizing" to enhance performance and execution speed, rather than being driven by financial difficulties. Affected employees were offered severance packages.

Illumina, a leading San Diego-based biotech company specializing in DNA-sequencing technology, is laying off 111 employees at its headquarters, effective March 12, 2024. This latest workforce reduction, announced in January, follows a challenging period marked by regulatory battles and shareholder activism. The company, which had approximately 10,200 global employees as of early 2023, is restructuring after losing a federal antitrust case, forcing it to divest Grail, a $7 billion cancer-testing startup it acquired in 2021. These layoffs, which include vice presidents, scientists, and engineers, are part of broader cost-cutting efforts to save $100 million, following several rounds of job cuts in 2023 that eliminated 230 positions in San Diego alone.

Thinx, the period underwear brand, is laying off 95 employees in New York City effective May 1, as part of organizational changes following its integration into majority owner Kimberly-Clark's global portfolio. The layoffs, cited as due to a merger and plant layoff in a WARN notice filed in late January, represent a restructuring effort as the direct-to-consumer brand, founded in 2013, continues to expand its retail presence in stores like Walmart and Target. The move underscores the ongoing evolution of the brand within the broader consumer goods industry under its corporate parent.

The Messenger, a digital news startup launched in May 2023, abruptly shut down on January 31, 2024, resulting in the layoff of its entire staff. The company, which employed approximately 300 people, was forced to close after failing to secure sufficient funding to reach profitability. Founder Jimmy Finkelstein announced the immediate closure in an email to employees, citing an inability to raise the necessary capital despite exhaustive efforts. The shutdown left staff without severance, with their final paychecks issued on the day of closure. The Messenger, which had aimed to provide non-partisan news coverage, ceased operations less than a year after its high-profile launch, highlighting the financial challenges facing media startups.

Trove Recommerce laid off 130 employees on 2024-01-31.

Cybersecurity firm Proofpoint is laying off 280 employees, representing about 6% of its global workforce of 4,500. The cuts, announced in late January 2024, include approximately 20 positions at its Israeli office, which employs around 300 people. The company, acquired by private equity firm Thoma Bravo in 2021, stated the layoffs are part of a strategic restructuring to align investments with priorities, streamline management, and leverage a global talent pool for long-term success. This move follows a series of acquisitions by Proofpoint in Israel, including Illusive in 2022.

LiDAR technology developer Innoviz is laying off approximately 60 employees, representing 13% of its 468-person workforce, as announced on January 31, 2024. The automotive tech company, headquartered in Israel with operations in Europe and the U.S., is implementing these cuts to reduce annual cash outlays by $22-24 million and extend its financial runway. This restructuring aims to optimize costs and focus investments on its newer InnovizTwo sensor and software suite, as the company navigates a critical market capture phase in the competitive LiDAR industry.

Zuora representing approximately 8% of its workforce on 2024-01-31.

In January 2024, the storytelling platform Wattpad, owned by Naver's Webtoon Entertainment, laid off approximately 20 employees, representing about 10% of its then 200-person workforce. This reduction was part of a company reorganization aimed at cutting costs. The move supports its parent company's broader financial restructuring efforts as it prepares for a potential U.S. IPO as early as 2025. This marks the second round of layoffs for Wattpad, following a 15% staff cut in March 2023. The Toronto-based company operates in the media and entertainment industry and has been introducing new monetization features like Wattpad Originals to adapt its business model.

Technology publisher TechCrunch laid off approximately eight employees on Monday as part of a restructuring effort to refocus its coverage on Silicon Valley's investors, founders, and startups. The layoffs, representing a small portion of its total workforce, coincided with the decision to wind down its five-year-old paid subscription product, TC+. Editor-in-Chief Connie Loizos stated that operating two business models had diluted focus, leading to the strategic shift to strengthen its core news offering. This move highlights the ongoing challenges in the media industry as publishers streamline operations to prioritize sustainable coverage areas.

Vipps on 2024-01-30.

PayPal laid off 2,500 employees representing approximately 9% of its workforce on 2024-01-30.

Aurora Solar, a software startup in the solar industry, laid off 20% of its workforce, affecting about 100 employees out of a total of approximately 500, on January 30, 2024. This decision came after the company reportedly missed its growth targets over the past year, attributed to broader macroeconomic challenges such as higher interest rates and regulatory changes like California's NEM 3.0, which reduced incentives for solar power. The layoffs follow a smaller round in November, reflecting ongoing adjustments in the face of shifting market dynamics and demand.

Health tech startup Noom conducted another round of layoffs on January 30, 2024, affecting employees including coaches and engineers. This follows a series of workforce reductions in recent years as the company, which operates a popular weight loss app, continues to restructure and streamline its operations. While the exact number of employees impacted in this latest round was not disclosed, the cuts are part of a broader trend of the company leaning more into operational efficiency. Noom operates in the competitive digital health and wellness industry.

Block, the fintech company led by CEO Jack Dorsey, laid off approximately 1,000 employees on January 30, 2024, as part of a broader effort to streamline operations. This reduction represents about 10% of its workforce, which the company aims to cap at around 12,000 employees, down from 13,000 late last year. Dorsey cited that the company's headcount had grown faster than its business, necessitating these cuts to achieve a leaner structure. The layoffs primarily affected teams at Cash App, Foundational, and Square, marking Block's second round of job cuts in recent months, following a smaller reduction at Tidal in December. This move aligns with a wider trend of workforce adjustments across the tech industry.

DispatchHealth laid off 88 employees on 2024-01-29.

iRobot, the maker of Roomba robot vacuums, is laying off approximately 350 employees, representing 31% of its workforce, following the collapse of its planned $1.7 billion acquisition by Amazon. The companies mutually terminated the deal in late January 2024 after determining there was no path to regulatory approval, particularly from the European Commission, which expressed antitrust concerns. In response to the failed deal and to stabilize its finances, iRobot also announced the immediate departure of its founder and CEO, Colin Angle, and will implement cost-cutting measures, including reducing R&D spending and pausing work on non-floorcare products like air purifiers and robotic lawn mowers. The layoffs and strategic shift mark a significant restructuring for the consumer robotics company.

Loopio, a software company specializing in response management solutions, has laid off 6% of its workforce. This difficult decision, announced by CEO Zak Hemraj, reflects broader challenges and changes within the software industry over the past 12-18 months. The layoffs are intended to allow the company to carefully manage resources and reinvest in product innovation and new capabilities. Loopio remains committed to its customers and market leadership. The company has encouraged job opportunities to be shared via a dedicated alumni email to support the affected employees.

Salesforce is laying off around 700 employees in its most recent tranche of job cuts, adding to previous layoffs announced last year, as part of restructuring efforts amid economic uncertainty and investments in AI.

Productboard, a San Francisco-based software startup valued at $1.7 billion in 2022, has initiated its third round of layoffs in less than two years, as reported in late January 2024. While the exact number of employees affected in this latest reduction is not specified, the company previously cut 20% of its workforce in November 2022 and another 10% in August 2023. At its peak in spring 2022, Productboard employed over 500 people. The layoffs reflect broader challenges in the tech industry, where many pandemic-era startups are prioritizing sustainability over growth amid a tough economic climate with high interest rates and scarce IPO opportunities. Backed by prominent investors like Tiger Global and Sequoia, Productboard serves over 5,400 customers, including major firms such as Microsoft and Zoom.

Flexport representing approximately 20% of its workforce on 2024-01-26.

Salesforce laid off 700 employees representing approximately 1% of its workforce on 2024-01-26.

Amperity laid off 20 employees on 2024-01-25.

Jamf representing approximately 6% of its workforce on 2024-01-25.

Business Insider representing approximately 8% of its workforce on 2024-01-25.

Cova representing approximately 100% of its workforce on 2024-01-25.

MVPindex laid off 12 employees representing approximately 30% of its workforce on 2024-01-25.

Indian food delivery giant Swiggy is laying off approximately 400 employees, which represents nearly 7% of its workforce, as announced in January 2024. This marks the second such round of job cuts in about a year as the Bengaluru-based startup aggressively streamlines operations to improve its financial health ahead of a planned initial public offering (IPO). Despite its core food delivery business being profitable, Swiggy is not yet profitable at the group level. The move comes amid intense competition with rival Zomato, which has recently become profitable and expanded its market share lead. With a valuation of $10.7 billion, Swiggy is under pressure to strengthen its metrics to secure a favorable valuation when it goes public.

Microsoft is laying off approximately 1,900 employees from its gaming division, which includes teams at Activision Blizzard, Xbox, and ZeniMax. This reduction, announced in late January 2024, represents about 8% of the Microsoft Gaming workforce, which totals around 22,000 employees. The layoffs are part of a broader strategy to integrate the recently acquired Activision Blizzard and align on a sustainable cost structure, eliminating areas of overlap. In addition to the job cuts, Blizzard president Mike Ybarra has departed, and a planned Blizzard survival game has been canceled.

In January 2024, logistics technology and last-mile delivery startup Veho laid off approximately 65 corporate employees, representing 19% of its corporate headcount. The company, which had over 910 total employees at the time, stated the cuts were part of a reorganization to improve efficiency, accelerate its path to profitability, and redirect investment toward client needs and growth. This move came despite Veho reporting nearly 90% revenue growth in 2023, following a period of rapid expansion and significant venture capital backing that had previously propelled it to a $1.5 billion valuation.

In January 2024, autonomous vehicle technology company Aurora Innovation laid off about 3% of its workforce, affecting dozens of employees. This followed an organizational review as the Pittsburgh-based firm, which employed roughly 1,800 people at the end of 2023, strives to streamline operations ahead of its planned commercial launch. Aurora is pushing to deploy up to 20 driverless trucks by the end of 2024, focusing initially on the Dallas-Houston freight route, while collaborating with Continental on mass-producing autonomous hardware. The layoffs reflect ongoing economic pressures and the high costs of developing safe self-driving technology, a challenge that has led to industry consolidation. Aurora, founded by veterans of Tesla, Uber, and Waymo, went public in 2021 to fund its ambitious goals in the competitive autonomous transportation sector.

HubSpot, a leading customer relationship management (CRM) software company, laid off approximately 20 content designers, as announced in a LinkedIn post. While the exact percentage of total employees affected is not specified, the layoffs represent a significant loss of specialized talent within the company's design and content teams. The post, shared by a former colleague, highlights the impacted individuals' expertise in product strategy, information architecture, and scalable content design, emphasizing their deep customer impact and collaborative skills. This move appears part of broader industry adjustments, though a specific reason for these layoffs at HubSpot was not detailed. The company operates in the competitive SaaS and marketing technology industry, serving a global customer base.

Desktop Metal representing approximately 20% of its workforce on 2024-01-24.

Storytel laid off 80 employees representing approximately 13% of its workforce on 2024-01-24.

Riot Games is laying off about 530 employees, representing 11% of its workforce, as announced on Monday. The company is also sunsetting its publishing group Riot Forge and reducing the team for Legends of Runeterra, citing organizational changes and performance issues.