Layoff Events

CNET, the prominent technology media outlet owned by private equity-backed Red Ventures, conducted significant layoffs in early March 2023, cutting approximately a dozen employees. This represents about 10 percent of its public masthead. The restructuring occurred just weeks after controversy emerged over CNET's quiet use of AI to generate articles. Announced internally by Red Ventures, the layoffs are part of a strategic shift to streamline operations and refocus the site on content that can drive traffic from Google search. Concurrently, editor-in-chief Connie Guglielmo stepped down to assume a new role as senior vice president of AI content strategy, signaling a continued corporate emphasis on artificial intelligence within the digital media industry.

MasterClass laid off 79 employees on 2023-03-02.

Moving concierge startup Kandela, based in Beverly Hills, has filed for bankruptcy in March 2023, citing insolvency after losing a legal dispute with its parent company, Porch Group. The company, which had over 100 employees absorbed by Porch after its 2019 acquisition, now operates as a shell with no assets, employees, or business operations. The bankruptcy stems from a $1.4 million arbitration award favoring Porch, which Kandela cannot pay, leading to liabilities of nearly $1.8 million. The startup, focused on arranging home service installations, attributed its downfall to alleged fraud by Porch over $6 million in earnouts, culminating in its closure after failed appeals and settlement attempts.

Cybersecurity firm Zscaler has laid off approximately 177 employees, representing 3 percent of its workforce of about 5,900. The company disclosed the restructuring plan on Thursday, following a period of aggressive hiring that doubled its team size over the past 18 months. Amid a challenging economic environment, Zscaler initiated a targeted optimization to streamline operations, address inefficiencies, and better align resources with strategic priorities. The layoffs are part of a broader trend in the tech and cybersecurity industries, with the company, a leader in cloud-based security and zero trust network access, aiming to drive profitable growth.

Flipkart, a major Indian e-commerce company, has been conducting a stealth downsizing exercise, according to internal sources in early 2023. While the company officially denies layoffs, reports indicate an unusually large number of employees have been affected through workforce streamlining and performance improvement programs (PIPs) following annual appraisals. The process, described as a rationalization measure, involved sudden virtual meetings where employees were asked to resign without clear reasons provided. This move aligns with broader cost-cutting trends in the tech industry during that period.

Swiss online comparison portal Comparis is laying off at least 10% of its workforce, affecting its 175 employees, as it initiates a consultation process. Founder Richard Eisler cites a "failed growth strategy" and a prolonged, costly dispute with the Swiss Financial Market Supervisory Authority (Finma) as key reasons. The Finma enforcement procedure, initiated in July 2022, argues Comparis operates as an insurance intermediary and must register as such, potentially leading to the disgorgement of profits since 2015. This has forced the company to set aside millions in provisions, despite internal legal assessments deeming the risk low. The conflict, ongoing for nearly four years, has critically impacted the company's financial stability, leading to this significant restructuring in March 2023.

PayFit laid off 200 employees representing approximately 20% of its workforce on 2023-03-01.

Protego Trust Bank, a cryptocurrency custody firm awaiting final approval to become a nationally chartered trust bank, has laid off more than half of its workforce in early March 2023 due to financial difficulties. The company, which operates in the crypto and financial services industry, was unable to secure fresh funding amid the ongoing crypto bear market, forcing it to terminate most employees. While dozens remain involved and operations are ready to launch, capital constraints have stalled progress. Protego, which raised $70 million in a 2021 Series A round from investors like Coinbase Ventures and FTX, is a mid-sized firm with its charter application pending beyond the 18-month deadline, highlighting the challenges in the regulated crypto banking sector.

Color Health laid off 300 employees on 2023-03-01.

In March 2023, global software consultancy Thoughtworks laid off approximately 500 employees, representing about 4% of its global workforce of over 12,500. The company, headquartered in Chicago and operating across 18 countries, cited the need to support future business growth amid a broader economic slowdown affecting the tech industry. Despite reporting strong quarterly revenue growth and a return to profitability, Thoughtworks made the difficult decision to reduce staff, with notifications beginning in late February and continuing into early March. The layoffs were implemented globally but notably excluded its workforce in India.

Sonder laid off 100 employees representing approximately 14% of its workforce on 2023-03-01.

iFood laid off 355 employees representing approximately 6% of its workforce on 2023-03-01.

Waymo laid off 209 employees representing approximately 8% of its workforce on 2023-03-01.

Eventbrite laid off 80 employees representing approximately 8% of its workforce on 2023-02-28.

In December 2022, Ezoic, an advertising technology firm, was rocked by an internal fraud scheme when a sales employee, Tyler Mancuso, exploited the company's systems to reroute a $9 million payment from Google into his personal bank account. He attempted to use the stolen funds to purchase gold bars but was arrested by the FBI. The heist occurred during a period of ad market slump and widespread tech layoffs, leaving Ezoic with a significant financial shortfall at a critical time of year. While the article does not specify the total number of employees or the exact scale of the company, the incident highlights severe security vulnerabilities within the adtech industry, which handles billions in digital advertising dollars.

DUX Education, a K-12 edtech startup based in Bengaluru, is ceasing all operations by April 2023 due to an inability to secure funding amid the ongoing investment crunch in India's startup ecosystem. The company, which had a team of nine employees managing over 250 online batches, will wind down after completing the academic year through March. Founded in 2020, DUX served more than 15,000 students with curriculum-based online classes but ultimately could not sustain itself without fresh capital, joining a growing list of edtech closures and layoffs across the industry.

MeridianLink, a financial technology (fintech) company, announced on February 28, 2023, a workforce reduction affecting approximately 9% of its employees. This decision, communicated by CEO Nicolaas Vlok, is part of a restructuring effort to consolidate functions, flatten the organizational structure, and improve efficiencies to better support long-term growth and customer service. The layoffs were attributed to the need to solidify the company's foundation amid macroeconomic challenges and to prioritize customer-centric investments. Impacted employees were offered severance packages, benefit continuation, and career support.

Electronic Arts laid off 200 employees on 2023-02-28.

Stytch laid off 19 employees representing approximately 25% of its workforce on 2023-02-27.

Mental-health startup Cerebral is laying off 285 employees, representing 15% of its workforce, as announced on February 27, 2023. This marks the company's third round of staff reductions in less than a year, following previous cuts in mid-2022 and October. CEO Dr. David Mou stated the layoffs are necessary to maintain a sustainable business and refocus on core patient services. The company, which provides telehealth for conditions like anxiety and depression, has faced significant turmoil, including federal investigations into its prescription practices for controlled substances like Adderall. These challenges have forced Cerebral to restructure in an effort to stay afloat after a period of rapid growth.

Sono Motors, a German electric vehicle startup, laid off approximately 300 employees, representing nearly all of its workforce, in early 2023. This drastic reduction followed the company's decision to cancel its flagship Sion solar-electric car project due to insufficient funding and a failed crowdfunding campaign. The layoffs, which affected around 90% of the staff, were part of a strategic shift to focus on licensing its solar technology to other manufacturers in the automotive industry. The move marked a significant downsizing for the once-promising startup, which had aimed to bring an affordable solar-assisted EV to market.

Fintech firm Amount laid off approximately a quarter of its workforce in February 2023, affecting a significant portion of its staff amid broader challenges in the banking and finance technology sector. While the exact number of employees impacted wasn't specified, the reduction reflects strategic adjustments within the company. The layoffs occurred as the industry faced economic headwinds, leading many firms to streamline operations to ensure long-term sustainability.

Palantir, the data analytics software company known for its government and defense work, is laying off approximately 75 employees, representing about 2% of its workforce of 3,838. The company confirmed the cuts on Monday, stating it was a tough but necessary choice to reduce teams in several areas as it reaches an inflection point and aims to continue evolving. This move follows Palantir's recent report of its first profitable quarter and an 18% revenue increase, yet it aligns with a broader wave of layoffs across the tech industry as companies adjust after a period of rapid growth. Despite the reductions, Palantir plans to continue hiring in strategically important areas.

Outreach laid off 70 employees representing approximately 7% of its workforce on 2023-02-27.

American cybersecurity company BitSight has shut down its Israel-based R&D center, laying off the entire local team of 40 employees. This closure comes just 17 months after BitSight established the center through its acquisition of Israeli startup VisibleRisk in September 2021. The decision is attributed to the broader financial and high-tech market crisis. BitSight, which serves over 2,300 customers globally and was valued at $2.4 billion at the time of the acquisition, is consolidating its operations amid the challenging economic climate.

Twitter laid off 200 employees representing approximately 10% of its workforce on 2023-02-25.

SAP Labs, the research and development unit of German technology giant SAP, laid off approximately 300 employees in India in late February 2023. This reduction, primarily affecting offices in Bengaluru and Gurgaon, resulted from the closure of a global delivery center that handled custom development for SAP implementation projects. The layoffs are part of a broader strategic transformation, as the company shifts focus toward cloud services and high-growth opportunities, aligning with a global restructuring that impacted around 3,000 roles. Affected staff, including some with over a decade of experience, received severance packages based on their tenure. This move contrasts with SAP Labs' earlier plans to significantly expand its workforce in India by 2025.

Ericsson laid off 8,500 employees representing approximately 8% of its workforce on 2023-02-24.

Poshmark, a secondhand fashion marketplace based in Redwood City, California, laid off less than 2% of its workforce in late February 2023, just two months after its $1.2 billion acquisition by South Korean internet giant Naver. The cuts primarily affected U.S. employees within the company, which had over 800 staff. The layoffs were attributed to the broader economic slowdown and the company's strategic realignment as it returned to being a private entity. This move reflects a wider trend of cost-cutting and downsizing across the tech and e-commerce sectors during the economic downturn.

EQRx, a biotechnology company focused on reimagining drug pricing, is laying off 18% of its workforce as part of a restructuring effort to conserve cash and improve operational efficiency. The cuts, approved by the board on February 24, 2023, will reduce the company's headcount to about 300 employees. This move follows a strategic shift after the FDA requested additional trial data for its lead cancer drug, leading EQRx to abandon U.S. approval plans. The biotech industry is facing market turbulence and tighter financing, prompting similar workforce reductions across the sector. EQRx aims to lower operating expenses and extend its financial runway into 2028 with approximately $1.4 billion in cash.

Eat Just laid off 40 employees on 2023-02-24.

Velodyne Lidar, a San Jose-based provider of laser-based lidar technology for autonomous vehicles and other applications, laid off 220 employees in February 2023. These job cuts were part of a broader wave of nearly 600 Bay Area reductions announced by tech and life science firms at the time. The layoffs at Velodyne followed its recent merger with another lidar company, Ouster, as the combined entity streamlined operations. This move reflected ongoing consolidation and cost-cutting pressures within the competitive lidar and automotive technology industry.

Stax laid off 24 employees on 2023-02-24.

EVgo laid off 40 employees on 2023-02-23.

Dapper Labs representing approximately 20% of its workforce on 2023-02-23.

Merative, the healthcare data and analytics company formerly known as IBM Watson Health, is laying off an estimated 200 employees, representing about 10 percent of its roughly 2,000-person workforce, as reported in February 2023. The layoffs are part of the company's strategic realignment following its acquisition by Francisco Partners. According to sources, the job cuts are associated with shifting roles offshore to reduce costs, with affected employees, including some over the age of 40, receiving three months of severance. This move continues a trend of restructuring within the health tech industry, as Merative focuses on its core product lines for long-term growth.

Berlin-based football media startup OneFootball has laid off approximately 150 employees, reducing its global workforce from 470 to 320. This represents a cut of about 32% and marks the second round of layoffs in a few months, following over 60 dismissals in December 2022. Founder Lucas von Cranach attributed the cuts to overambitious expansion, particularly into a blockchain-based digital collectibles project, which diverted focus and resources from cost control and core strategy. Despite reaching "unicorn" status with a billion-dollar valuation in 2022 and serving over 130 million monthly users, the company is now refocusing on its primary business. The layoffs occurred in late February 2023.

On February 23, 2023, StrongDM, a cybersecurity company specializing in Universal Privileged Access Authorization (UPAA), laid off 40 employees. The layoffs were a result of strategic growth missteps and the need to refocus the company's product and revenue strategy amid broader economic challenges affecting the tech sector. CEO Tim Prendergast stated that cost optimizations, including vendor reviews, were insufficient, as employee compensation was the largest expense, necessitating a team restructuring. The company, which serves clients ranging from Fortune 100 companies to startups, is focusing on its long-term plan to revolutionize traditional Privileged Access Management (PAM).

Vibrent Health representing approximately 13% of its workforce on 2023-02-23.

Online fashion retailer The Iconic has laid off 69 employees, representing 6% of its workforce, as part of a broader restructuring announced in February 2023. The cuts, all at the head office level, are part of the company's shift to transform into a platform business model, which involves streamlining operations and rescoping roles. Some affected staff may be redeployed within the business. The Sydney-based e-commerce company, part of the Global Fashion Group, aims to enhance its marketplace and fulfillment services while continuing to serve over 2.2 million customers in Australia and New Zealand.

Crypto intelligence firm Messari laid off 15% of its global workforce in February 2023 as part of a restructuring effort to navigate challenging market conditions. The company, led by CEO Ryan Selkis, cited market headwinds in the broader crypto and tech sectors as the reason for this difficult decision, which followed a $35 million Series B funding round the previous year. Messari stated the move was a long-term realignment to better serve customer data needs and that it still planned to hire for open roles. This made Messari another prominent crypto company, alongside firms like Coinbase and Polygon Labs, implementing job cuts during the ongoing crypto winter.

Locomation representing approximately 100% of its workforce on 2023-02-22.

Arch Oncology on 2023-02-22.

Australian crypto gaming startup Immutable laid off 11% of its workforce in an internal announcement. The company, valued at $3.5 billion last year, cited a need to extend its cash reserves and focus resources on key projects, despite having $280 million in cash. This move follows a reported annual loss and is part of a broader trend of staff cuts in the tech startup sector, influenced by investor caution and a turbulent crypto market.

Jounce Therapeutics, a clinical-stage biotechnology company focused on cancer immunotherapies, announced a significant restructuring on February 22, 2023, reducing its workforce by approximately 57 percent. This difficult decision stems from the company's assessment that its key clinical programs, JTX-8064 and vopratelimab, require more funding and a broader scope than Jounce can pursue independently. While data from the SELECT and INNATE trials showed promise, it was not sufficient for the company to advance the programs alone. Jounce will now seek business development opportunities to potentially continue this work. The restructuring, to be substantially completed by March 31, 2023, will result in a non-recurring charge of about $11.2 million.

TaskUs, a business process outsourcing (BPO) company, has laid off approximately 3% of its global workforce, affecting around 300 employees out of a total of about 10,000. The layoffs, which occurred in early 2023, are part of a strategic restructuring effort to improve operational efficiency and align resources with evolving client demands in the competitive technology and customer service support industry. As a publicly traded company, TaskUs aims to streamline its operations amidst shifting market conditions.

Synamedia, a global video software provider, has laid off approximately 200 employees, representing 12% of its workforce. This round of cuts, announced in February 2023, marks the company's second restructuring in recent months, following a smaller layoff the previous November. The company cited economic headwinds and a need to align its product strategies with evolving video market demands as reasons for the reduction. While affecting global operations, the layoffs include dozens from its Israel headquarters, though Synamedia emphasized that its Israeli hub remains a key center for innovation and security. The company, which serves major broadcasters and content providers, is navigating a challenging tech landscape with these workforce adjustments.

Basis Technologies, a provider of cloud-based workflow automation and business intelligence for the ad-tech industry, laid off approximately 40 employees, representing about 4% of its workforce, in a restructuring move around early February 2023. The layoffs primarily affected sales and service groups, including several senior team members. The company, which recently integrated programmatic guaranteed buying into its platform, cited restructuring as the reason, reflecting broader challenges in the technology and advertising sectors.

Crunchyroll laid off 85 employees on 2023-02-21.

Ethos Life laid off 50 employees on 2023-02-21.