Layoff Events

DHI Group laid off 53 employees representing approximately 10% of its workforce on 2023-05-26.

In May 2023, Hamburg-based food delivery startup Circus Kitchens laid off 35 employees, representing about 25% of its headquarters staff. The layoffs included 18 headquarters roles and 17 operational positions. The company cited restructuring due to temporarily suspending service in one of its three Hamburg delivery zones and shifting focus toward offering pickup options, which required kitchen adjustments. Additionally, Circus pointed to the uncertain economic climate within the startup ecosystem and a strategic push for operational efficiency and profitability as reasons for the headquarters cuts. Despite rumors, the company denied financial issues, noting it secured €11 million in seed funding in late 2022. Founded in 2021 by Nikolas Bullwinkel, a co-founder of Flink, Circus operates in the competitive food delivery industry.

Prosus-backed virtual events platform Airmeet has laid off approximately 30% of its workforce, affecting at least 75 employees out of a total of 250-300 staff. The layoffs, which occurred earlier this week, impacted teams across sales, marketing, technology, and operations in India, the US, and Europe. CEO Lalit Mangal cited reduced marketing budgets and rapid commoditization in the virtual event industry as key reasons, stating that current execution was not yielding the needed financial outcomes. The Bengaluru-headquartered startup, which raised $35 million in Series B funding over a year ago, aims to extend its cash runway and improve operational efficiency amid a broader funding winter affecting Indian startups.

Media creator startup Jellysmack conducted layoffs in the US and France on May 25, 2023, as part of a company restructuring aimed at improving operational efficiency and adapting to macroeconomic challenges and evolving social media platforms. In the US, 13 employees were affected, while the number in France remains undetermined due to an ongoing legal process. This creator economy company, which specializes in redistributing creator content for ad revenue, had recently earmarked significant funds for investments, including in kids and family influencers. The layoffs follow previous workforce reductions in the past year, reflecting ongoing adjustments within the startup.

Kabam, the developer behind Marvel Contest of Champions and Disney Mirrorverse, laid off 12% of its workforce in May 2023 as part of a restructuring effort. This follows a previous round of layoffs in November 2022, when 7% of employees were let go. The company cited current economic conditions and industry market realities as reasons for the decision, aiming to gain financial flexibility to invest in new growth areas while streamlining existing teams. The layoffs affected various positions, including creatives, QA, and liveops. This move reflects broader trends in the mobile gaming and tech industries, which are facing post-pandemic adjustments and economic pressures.

BenevolentAI, a London-based AI drug discovery company, laid off approximately 180 employees in May 2023 as part of a restructuring plan. The layoffs, which also involved cutting pipeline programs, were implemented to streamline operations and focus resources. While the exact percentage of the workforce affected is not specified, the move reflects broader challenges in the biotech and AI-driven pharmaceutical sectors, where companies often adjust strategies to prioritize core projects and ensure financial sustainability amid evolving market conditions.

Guild laid off 172 employees representing approximately 12% of its workforce on 2023-05-24.

WillowTree, a Charlottesville-based digital product consultancy, has laid off approximately 120 employees as part of a company-wide restructuring following its acquisition by TELUS International earlier this year. The layoffs, announced in 2023, affect teams across the nation and represent a significant workforce reduction, though the exact percentage relative to the total employee count is not specified. Company leadership stated the move is intended to sharpen focus on core service areas like marketing, digital product development, and AI solutions to position for long-term growth. This contrasts with earlier post-acquisition assurances of job creation. The tech industry firm is providing affected employees with severance packages and transition support.

Western Digital, a major hard drive manufacturer, is laying off 60 employees in Israel, representing about 7% of its 800-person workforce in the country. This move, reported on May 24, 2023, marks the company's second round of layoffs in Israel within six months, reflecting broader challenges in the tech industry. The layoffs affect various offices across Israel, including locations in Kfar Saba, Tefen, and Omer. Western Digital had significantly expanded its presence in Israel following its $19 billion acquisition of SanDisk in 2016, which included established R&D operations.

Brainly, an online learning platform, has announced layoffs affecting a portion of its workforce. While the exact number of employees impacted was not specified in the initial announcement, the company communicated these difficult cuts to all staff approximately two years ago. The decision was framed within a context of organizational restructuring and a strategic shift to ensure long-term sustainability. Operating in the competitive edtech industry, Brainly emphasized transparency as a core value in sharing this news with its employees and broader professional network.

Alibaba Cloud, the cloud computing division of Chinese e-commerce giant Alibaba, is laying off 7% of its workforce as it prepares for an independent public listing. The restructuring follows the company's March announcement to split into six units, with the cloud division slated for a full spin-off within a year. While Alibaba Cloud leads in market share within China and ranks second in Asia-Pacific, its revenue growth has slowed, partly due to the loss of major clients like ByteDance and a strategic shift toward higher-quality growth. The layoffs, confirmed in May 2023, are part of efforts to streamline operations ahead of the IPO, with affected employees offered severance packages or internal transfer opportunities.

Flink, a Berlin-based rapid grocery delivery service, has secured a €150 million emergency funding round led by existing investors like Rewe and DoorDash, despite a significant drop in valuation from €2.5 billion to around €1 billion. This comes after the company avoided a speculated sale to competitor Getir. The funding follows a period of severe challenges for the quick-commerce sector post-pandemic, with Flink having already laid off over 8,000 employees last year to cut costs. While this new capital injection provides a temporary lifeline, it highlights ongoing struggles to achieve profitability in the industry.

SoundCloud has laid off 8% of its staff as part of efforts to reach profitability this year, following a previous round of layoffs in August last year. CEO Eliah Seton stated this decision is essential to secure the company's future for artists and fans. The layoffs come amid challenges in the music streaming industry, with SoundCloud focusing on partnerships and new features like a vertical feed and fan-engagement tools.

Reliance JioMart, the online wholesale arm of Reliance Retail, has laid off over 1,000 employees as part of a major cost-cutting initiative following its acquisition of Metro Cash and Carry's India business. This move, reported in late May 2023, aims to eliminate role overlaps with Metro's existing 3,500-person workforce and streamline operations. The layoffs, which affected both ground and corporate staff, are part of a broader plan to reduce the wholesale division's 15,000-strong workforce by two-thirds. The company is shifting strategy from deep discounting to focus on improving margins, reducing losses, and consolidating fulfilment centres. This restructuring reflects the competitive pressures in India's B2B e-commerce and organized retail sector, where large players like Reliance are optimizing their operations for greater efficiency and profitability.

SoundCloud, the audio streaming service, announced on May 23 that it is laying off 8% of its workforce as part of a strategic move to achieve profitability for the first time in the company's history by the fourth quarter of this year. The decision primarily affects U.S.-based employees and follows a previous round of layoffs in August 2022 that cut 20% of staff. CEO Eliah Seton emphasized that this challenging step is essential to ensure the long-term health of the business, while the company also seeks further investment. This marks another restructuring effort for SoundCloud, which had significant layoffs in 2017 as well, as it strives to secure a sustainable and profitable future in the competitive music streaming industry.

Tractable, a computer-vision AI startup valued at $1 billion, has conducted two rounds of layoffs, cutting 10 to 15 employees in September 2022 and a larger number in January 2023, affecting teams across seven countries. The company, which uses AI to assess property and auto damage for insurers, cited a shift in investor focus from growth to profitability and the need to adapt to a challenging economic environment. Despite the broader AI investment boom, Tractable, like many tech firms, has been impacted by the global tech downturn and reduced venture capital funding. The layoffs are part of its effort to streamline operations and position for strategic growth in 2023.

U.S. chip giant Qualcomm is laying off around 30 employees in Israel, representing approximately 5% of its local workforce there. This move, reported in May 2023, is part of a broader series of cutbacks at the semiconductor company. Qualcomm maintains two R&D centers in Israel and continues its activity in the country through investments and acquisitions, such as the recent purchase of Autotalks. The layoffs reflect ongoing adjustments within the tech industry amid economic uncertainties.

FemTech Health representing approximately 100% of its workforce on 2023-05-22.

Daylight, an LGBTQ+ focused neobank in the fintech industry, is shutting down entirely, ceasing operations on June 30, 2023. The closure follows significant turmoil, including a lawsuit from former employees alleging discrimination and misconduct by the CEO, as well as a reported inability to sustain its services profitably. The startup, which had raised $20 million in venture capital, is effectively laying off its entire workforce as it winds down. CEO Rob Curtis cited the challenge of covering costs and suggested that serving the LGBTQ+ community might be better suited for larger banks.

Paperless Parts on 2023-05-22.

AppFolio laid off 62 employees on 2023-05-22.

Nuance Communications, the Burlington-based speech-to-text pioneer acquired by Microsoft in a nearly $20 billion deal, is laying off an unspecified number of employees as part of its ongoing integration with the tech giant. The cuts, announced internally in late February 2024, come as the company sharpens its focus on the healthcare market amid broader macroeconomic pressures and shifting customer needs. While the exact scale of the layoffs wasn't disclosed, Nuance had approximately 7,000 employees at the time of the acquisition announcement in 2021. The move reflects strategic adjustments within the technology and healthcare IT sectors as Microsoft consolidates its operations post-purchase.

German fintech startup Moss has laid off approximately 30 employees, primarily from its commercial department, as confirmed by the company. This follows a previous round of layoffs in September 2022, when the workforce was reduced from around 500 to about 380 employees. The company, which has raised $160 million and was last valued at $500 million, cites a strategic adjustment to accelerate its path to profitability amid a challenging funding environment. This move is part of a broader trend of workforce reductions within the fintech industry.

Krebs Stamos Group, a cybersecurity consulting firm founded by Alex Stamos and Chris Krebs, laid off six employees last week. The firm had 18 employees in April, and the layoffs were attributed to a shift in client needs, reducing the team to 14 members. This event highlights ongoing layoffs in the cybersecurity industry despite predictions of resilience.

dbt Labs, a data transformation software company, laid off 15% of its global workforce in May 2023. This decision came after a review of Q1 2023 financials, where growth, while continuing, fell short of the company's ambitious plans. CEO Tristan Handy cited the need to reset expectations in a challenging economic environment for the software sector. The layoffs impacted every business function. Prior to this, dbt Labs had grown rapidly from about 50 employees in early 2021 to over 440, driven by strong demand for its dbt Cloud product. The company, which serves over 20,000 businesses, offered a 12-week severance package and other support to affected employees.

Israeli anti-toxicity startup L1ght is shutting down and laying off all 22 employees after a planned acquisition by an American public company fell through. The company, founded in 2018, developed AI technology to detect harmful online content. The deal collapsed in May 2023 due to the broader economic slowdown, which impacted the acquiring company. Following the failed acquisition, L1ght sold its intellectual property and ceased operations.

Pie Insurance laid off 63 employees representing approximately 14% of its workforce on 2023-05-18.

On May 18, 2023, Clearbit, a B2B data intelligence company, conducted a layoff affecting a number of its employees. The decision was announced by returning CEO Matt Sornson, who cited the need to create a faster, flatter organization closer to customers and to reduce costs to ensure profitable growth and continued innovation. While the exact number of employees laid off and the total workforce size were not disclosed, the move was described as a difficult but necessary step to reallocate resources toward improving core data products. The affected team members were offered support including severance pay, extended healthcare, and career assistance. This restructuring reflects broader pressures in the tech industry to streamline operations and focus on sustainable business models.

TuSimple, an autonomous trucking company that went public in 2021, is laying off about 30% of its global workforce, primarily affecting its U.S. operations. This reduction will cut its U.S. staff from approximately 550 to 220 employees. The layoffs are part of a restructuring effort aimed at preserving cash and maintaining operations amid financial challenges, including a delisting notice from Nasdaq for failing to file timely quarterly reports. Announced in May 2023, this marks the company's second major workforce reduction in five months, following a 25% layoff in December 2022 after a key partnership with Navistar dissolved. Concurrently, TuSimple plans to retain its China-based subsidiaries, which are advancing autonomous vehicle projects, despite potential regulatory concerns.

Nextbite, a virtual restaurant brand platform in the food technology industry, conducted another round of layoffs in mid-May 2023, affecting an undisclosed number of employees. Based on LinkedIn posts from over 20 former staff, including senior roles, the cuts appear significant, with some employees stating the majority of the workforce was eliminated and indicating a potential full wind-down or major restructuring of the company. This follows at least two prior layoff rounds in 2022. Despite recent expansions, such as partnerships with IHOP and Nathan's Famous, the company has not secured new funding since its Series C round in February 2021, contributing to its financial strain. Several affected employees reported being terminated without severance.

Formstack, a software company specializing in form and workflow automation, has conducted a layoff affecting an unspecified number of employees as part of a restructuring plan. The decision, announced by CEO Chris Byers, aims to streamline internal processes and simplify the operating model to ensure long-term growth and profitability. While the exact number of impacted employees and the percentage of the workforce were not disclosed, the company emphasized its commitment to supporting the departing staff by creating an alumni directory to help them find new opportunities. This move is positioned as a strategic adjustment to navigate economic challenges while maintaining a 17-year strategy of debt-free, profitable growth. The layoffs occurred in the context of a broader effort to continue delivering innovation and a strong customer experience.

Stash laid off 40 employees representing approximately 10% of its workforce on 2023-05-17.

Oracle, following its $28 billion acquisition of health IT giant Cerner in June 2022, has laid off over 3,000 employees from Cerner's original workforce of 28,000, representing a reduction of over 10%. These layoffs, part of a broader cost-cutting effort that also includes a freeze on raises and promotions through 2023, have occurred across various teams including marketing, engineering, and product, with cuts reported as recently as May 2023. The restructuring, while common post-acquisition, has severely impacted morale within the Cerner unit, exacerbated by leadership changes and the sale of Cerner's Kansas City buildings. The health IT industry giant, now integrated into Oracle Health, is undergoing significant transformation under its new parent company.

Brazilian fintech startup Quanto has initiated a major operational restructuring, resulting in a layoff of 85% of its workforce. While the exact number of affected employees is not specified, this drastic cut reflects the company's response to significant market challenges. The decision, announced in a public letter, is part of a broader effort to navigate current adversities while honoring obligations to departing staff with extended health insurance and other benefits. Quanto will continue to support existing clients and maintain its regulatory duties as a Payment Transaction Initiator but has indefinitely halted services for new requests. The company remains committed to the Open Finance ecosystem in Brazil, aiming to democratize access to open data and transform the financial market, despite this substantial downsizing.

Fintech company Zepz, owner of the money transfer brands WorldRemit and Sendwave, is laying off 420 employees, which represents about 26% of its roughly 1,600-person workforce. The London-based firm announced the cuts this week, citing a "workforce optimization" plan to eliminate duplicated roles following the integration of Sendwave and WorldRemit under the single Zepz parent company. The layoffs primarily affect customer care and engineering teams as the company centralizes these operations. CEO Mark Lenhard stated the move is a strategic step to streamline the organization for long-term growth, emphasizing it is driven by structural needs rather than immediate macroeconomic pressures. This marks the second round of layoffs at Zepz in under a year.

DroneUp, a Walmart-backed drone delivery startup, laid off a small percentage of its workforce in early 2024 as part of a strategic shift. The company, which now has 418 total employees, is moving away from enterprise services like construction monitoring to focus more intensely on its core drone delivery hubs. This restructuring reflects the competitive pressures and ongoing challenges in scaling commercial drone delivery within the tech and logistics industry. The layoffs coincide with a broader trend of downsizing in the tech sector, though DroneUp stated it plans to hire more people than were let off over the following six months.

Insurtech company Lemonade is laying off about 45 employees, representing 3% of its total workforce, as part of a restructuring effort aimed at improving personnel alignment and advancing toward profitability. The layoffs, announced in May 2023, primarily affect research and development departments, with approximately 30 of the impacted employees based in Israel—about 10% of the company's workforce there. Lemonade described the move as a periodic audit to ensure the right talent is in place, noting it continues to recruit for other roles. This follows a similar round of cuts a year earlier that focused on U.S. customer service.

In May 2023, beverage technology startup Cana shut down and laid off all of its employees after failing to secure crucial funding. The company, which had developed a prototype appliance capable of creating customized drinks, was unable to raise the capital needed to establish a production line and begin shipping devices. Despite having raised $30 million in early 2022 and enlisting a high-profile brand ambassador, Cana ultimately succumbed to the challenging funding environment, particularly tough for consumer hardware startups. The closure marked the end of its ambitious vision for an on-demand beverage system.

E-Discovery software provider Everlaw conducted a layoff in May 2023, reducing its staff by approximately 10%. This move reflects broader trends of workforce adjustments within the legal technology industry during that period, as companies navigated economic uncertainties. The reduction impacted a significant portion of the company's employees, aligning with cost-cutting measures seen across the tech sector.

Slickdeals laid off 79 employees representing approximately 33% of its workforce on 2023-05-12.

On May 10, 2023, U.S.-based location services company Telenav announced the closure of its office in Cluj-Napoca, Romania, by the end of 2024, resulting in layoffs for all 172 employees at that site. The company cited a difficult macroeconomic environment as the reason for the decision, aligning with broader tech industry downsizing trends. Affected staff will receive a comprehensive support package during the transition. Work from the Cluj office, which included contributions to ADAS development, map rendering, and OEM customer support, will be relocated to Telenav's other offices in the United States and China.

Fintech unicorn CRED-owned corporate expense platform Happay laid off approximately 35% of its workforce, affecting around 160 employees, as part of a significant restructuring move announced on May 12, 2023. The layoffs impacted various departments including sales, marketing, tech, product, and operations. With over 450 employees prior to the cuts, the decision was linked to the annual appraisal cycle and employee performance. Happay, acquired by CRED in a $180 million deal in December 2021, offered a severance package including three months' salary, extended insurance, and job placement assistance. This restructuring occurs as parent company CRED expands its fintech ecosystem while navigating substantial financial losses.

Autonomous delivery robot startup Nuro is laying off 30% of its workforce, approximately 340 employees, in May 2023 as part of a major restructuring to extend its capital runway. This marks the company's second significant round of layoffs in less than a year, following a 20% reduction in November. The move involves shifting resources away from commercial operations and toward research and development, including pausing plans to scale commercial activities and delaying volume production of its flagship Nuro bot. The restructuring is intended to provide the company with enough capital to operate for another three years without additional fundraising. Affected employees will receive severance packages and healthcare support.

In May 2023, dental technology startup Toothsi, known for its clear aligners and endorsed by celebrities like Virat Kohli and Anushka Sharma, laid off approximately 20 to 30 employees. This reduction, impacting tech, product, and testing teams, was part of an effort to extend the company's financial runway amid a funding crunch, as it struggled to secure new investment. The layoffs occurred about a year after Toothsi raised $40 million, which was initially intended for team expansion into new markets and categories. Operating in the health-tech and personal care industry, the startup, which also runs the sister brand Skinnsi under the parent brand MakeO, joins a trend of startups downsizing to manage costs in a challenging economic environment.

Tessera, a Paradigm-backed NFT ownership platform, is shutting down entirely, effectively laying off all employees. The company, which had raised $20 million in a Series A round led by Paradigm in 2022, made the decision after analyzing market scenarios, its structure, and financial situation. Co-founder Andy Chorlian announced the wind-down on May 12, 2023, stating that targets for profitability for its projects, including the Escher marketplace, did not make business sense. This closure occurs amid a struggling NFT market and follows recent legal charges against Chorlian related to an alleged securities manipulation scheme. The entire team is impacted as operations cease over the coming weeks.

Meesho, an Indian social commerce startup, laid off 251 employees, representing 15% of its workforce, on Friday to accelerate its timeline to profitability and work with a leaner organizational structure. This is the second round of job cuts, following 150 layoffs a year ago, as the company aims to reduce cash burn and achieve EBIDTA breakeven in 2023.

Cornershop laid off 250 employees representing approximately 11% of its workforce on 2023-05-11.

On May 11, 2023, e-discovery and legal technology company CS Disco Inc. conducted its second round of layoffs for the year, reducing its workforce by 8%. The company, which provides software for the legal industry, disclosed this staff reduction in a filing with the U.S. Securities and Exchange Commission. This move reflects ongoing adjustments within the legal tech sector as companies aim to streamline operations and improve financial efficiency amid broader economic pressures.

Varo Bank has laid off 97 employees as part of a restructuring effort to reduce costs and move toward profitability. The cuts primarily affect the contact center and remote deposit capture group, which are being outsourced. This reduction represents a streamlining of operations for the digital banking company, which remains well-capitalized and focused on product innovation and customer growth. Impacted staff have been notified and will receive transition support. The layoffs were announced in early 2023 as Varo aims to strengthen its financial position while continuing to serve its customer base.

Microsoft laid off 158 employees on 2023-05-10.