Layoff Events

In July 2022, Kenyan logistics startup Sendy laid off 10% of its workforce, affecting 30 employees out of a total of 300. The company, founded in 2015 and based in Nairobi, cited global economic pressures impacting tech companies as the reason, stating the move was part of a restructuring to drive efficiency and manage costs. This downsizing followed a broader trend in the African tech sector, where startups are facing reduced venture capital funding and economic headwinds. Sendy, which had raised $26.5 million and previously aimed for a $100 million round to expand into West and Southern Africa, also reportedly paused its expansion plans into Egypt and South Africa. The layoffs highlight the challenges faced by growth-stage startups in the logistics and transport industry amid a global tech downturn.

The Predictive Index, a company specializing in talent optimization and behavioral assessments, laid off 40 employees on Tuesday due to a reduction in force (RIF). While the exact total number of employees and percentage affected are not specified in the post, the layoffs impacted a group described as highly vetted professionals with strong cognitive and behavioral alignment to their roles. The event highlights the ongoing challenges within the tech and HR technology sectors, even for companies that emphasize values like teamwork and empathy. The post aims to support affected colleagues by showcasing their qualifications and connecting them with new opportunities.

Streaming-TV provider FuboTV conducted a small workforce reduction in its U.S. business on August 2, 2022, as part of a broader effort to adopt a more conservative approach to growth amid a deteriorating macroeconomic environment. The company, which operates in the competitive media and sports streaming industry, stated the layoffs were a difficult decision to ensure financial flexibility and focus on profitable growth. While the exact number of affected employees was not disclosed, the move reflects the challenges faced by the sports-focused, publicly-traded company, which has yet to achieve profitability despite significant revenue growth. The layoffs were effective August 15, coinciding with a period of increased scrutiny on media and sports stocks during an economic downturn.

On August 2, 2022, Nylas, a communications API platform company in the technology industry, announced a significant workforce reduction. The company's co-founder and CEO, Gleb Polyakov, stated that due to shifting economic dynamics and the need to ensure considerable financial runway during the downturn, the decision was made to lay off 80 employees. This reduction was framed as a strategic realignment to position the company with ample resources and flexibility to navigate the uncertain market and be ready for a future recovery. The leadership emphasized treating impacted employees with compassion, offering a severance package including two months of base pay, extended healthcare, job support, and other benefits.

Seegrid laid off 90 employees on 2022-08-02.

Glossier, a direct-to-consumer beauty brand, laid off approximately two dozen employees this week as part of an ongoing internal restructuring. This follows a previous round of layoffs earlier in the year that primarily affected tech staff. The company, which employs around 1,000 people globally, is pivoting its strategy to focus more on retail and wholesale distribution, including a new partnership with Sephora set to launch in early 2023. Under CEO Kyle Leahy, who took over in June, Glossier is reorganizing to support an omnichannel approach, shifting from its earlier DTC-exclusive model. While reducing roles in some areas, the company is simultaneously hiring for over a dozen new positions in retail, product, supply chain, and wholesale to align with this refined direction.

In August 2022, the retail investment fintech company Robinhood laid off approximately 23% of its workforce, affecting about 713 employees and reducing its total staff to roughly 2,400. This significant cut came just three months after the company had already reduced its workforce by 9%. CEO Vlad Tenev took responsibility, citing over-hiring during the 2021 market frenzy based on expectations of sustained high retail engagement. He explained that the deteriorating macroeconomic environment, including high inflation and a crypto market crash, led to reduced customer trading activity, making the earlier layoffs insufficient. The layoffs were concentrated in operations, marketing, and program management functions.

OnlyFans, the subscription-based platform known for adult content, has laid off an unspecified number of employees as part of a move to "reshape certain teams," announced in early August 2022. The company, which experienced explosive growth during the pandemic, cited this restructuring as necessary for its future and its creator community, offering affected staff severance and career support. While exact figures on the layoffs and total workforce weren't disclosed, the company had previously noted it was expanding its team by 2-3% monthly. This decision reflects broader adjustments within the creator economy, as OnlyFans navigates post-pandemic operations under new leadership, following a period where user and revenue numbers surged dramatically.

Oracle on 2022-08-01.

In August 2022, the educational technology company Classkick conducted a layoff, as indicated by a public spreadsheet tracking affected employees. The document lists at least 13 individuals across roles in engineering, product design, customer support, business operations, and recruiting who were impacted during the first half of the month. While the exact scale of the layoff relative to the company's total workforce is not specified in this data, the event reflects broader industry challenges and restructuring efforts common among EdTech firms during that period.

Indian agritech startup DeHaat, a soonicorn valued over $500 million, conducted layoffs in early August 2022, less than a year after raising a record $115 million. Founder and CEO Shashank Kumar confirmed the workforce reduction but disputed external reports of 500 job cuts, stating the number was not in the triple digits and attributing the action to performance corrections and culture misfits. With a total employee base exceeding 2,000 after rapidly adding 1,200-1,300 staff in the prior 14-15 months, the company aimed for profitability by March 2024 despite widening losses, highlighting the ongoing adjustments within the high-growth agritech sector.

In August 2022, Brazilian fintech Hash laid off 58 employees, representing over half of its team and leaving just 52 staff members. This drastic cut followed a previous round of layoffs in June and was driven by a critical financial situation. The company's CEO announced the decision via Slack, revealing that five months of failed fundraising efforts had pushed the startup to a breaking point, forcing it to consider a potential shutdown. Despite raising R$300 million in 2021 and being recognized as a promising fintech, Hash faced challenges with cash management and operational efficiency. The layoffs were a last-ditch effort to maintain minimal operations while the company evaluated final investment options or a closure plan by the end of the month.

Perceptive Automata representing approximately 100% of its workforce on 2022-08-01.

Whereby, a video conferencing platform, recently conducted layoffs as part of a strategic shift toward profitability and greater financial resilience amid challenging market conditions. The company did not disclose the exact number of employees affected, but the CEO publicly shared a list of impacted team members who opted to have their details shared. Whereby serves millions of users and maintains products like Whereby Meetings and Embedded. The layoffs, announced last week, reflect broader adjustments in the tech industry as companies prioritize sustainable operations.

Israeli volunteering platform startup Vee has laid off 16 employees, representing 30% of its 50-person workforce, as announced by CEO May Piamenta in a LinkedIn post on July 31, 2022. The company, which had raised $13.5 million in funding, including a $12 million Seed round just months prior, cited a need to ensure its long-term sustainability and commitment to its mission. Operating in the HR and social impact tech industry, Vee provides a platform for corporate volunteering. Piamenta took full responsibility for the difficult decision, emphasizing the unfairness to the team and urging other companies to hire the affected, talented individuals.

Metigy, an Australian marketing technology company, has entered administration, resulting in the layoff of its entire workforce of 75 employees. This represents a 100% reduction in staff. The company's collapse occurred in late 2022, as indicated by the social media post, and was attributed to financial difficulties leading to administration. The tech startup, which provided AI-driven marketing tools for small businesses, has ceased operations.

Sherpa, a company specializing in AI-powered visa and border crossing services, has laid off 22 employees. This reduction comes as the company aims to become less dependent on external venture capital funding, responding to a significant market shift where revenue-to-valuation multiples have sharply declined. The layoffs, described by leadership as an extremely difficult decision, are intended to ensure the company can continue fulfilling commitments to partners and customers. While the exact total workforce and percentage affected aren't specified, the move reflects broader challenges in the tech and venture capital landscape.

Indian urban mobility firm Ola is laying off approximately 1,000 employees as part of a major restructuring effort to sharpen its focus on the electric vehicle (EV) sector. The layoffs, ongoing as of late July 2022, affect various verticals including mobility, hyperlocal services, fintech, and used cars. Concurrently, the company is aggressively hiring for its EV business, planning to bring in significantly more talent for initiatives like lithium-ion battery cell manufacturing and electric car development. This shift represents a strategic repurposing of its workforce rather than mere cost-cutting, as Ola pivots away from some of its earlier super app ambitions to concentrate on its core electric mobility future.

Clearco, a Canadian FinTech company, has laid off 125 employees, representing about 25% of its global workforce, which it previously stated was around 500 people. The co-founders announced the cuts via email, citing the challenging macroeconomic environment as the primary reason. They described the move as necessary to ensure long-term sustainability and profitability, allowing Clearco to continue supporting founders. This follows a period of quiet downsizing and operational adjustments, including earlier layoffs in Ireland and fee increases for its startup loans. The layoffs reflect broader pressures in the tech industry, as companies like Shopify also reduce staff amid economic uncertainty.

In August 2022, ad tech firm Quantcast laid off approximately 6% of its workforce, affecting around 40 employees out of a total of roughly 700. The cuts were part of a global restructuring announced internally as the company, like many in the digital media and ad tech industry, faced economic headwinds and reduced advertiser spending. This move reflected broader sector-wide belt-tightening amid a challenging economic climate.

Chinese online grocery company MissFresh has suspended its core on-demand delivery service and initiated significant layoffs affecting the majority of its staff, as reported in late July 2022. The company, which went public on Nasdaq in 2021, cited a strategic shift to maximize profitability as it discontinues its fast-delivery model. This downsizing reflects the severe financial pressures and challenges in achieving profitability within the capital-intensive "distributed mini warehouses" model common in China's competitive online grocery industry. MissFresh will continue operating its second-day delivery and retail cloud services.

CoinFLEX on 2022-07-29.

Imperfect Foods laid off 50 employees on 2022-07-29.

Shelf Engine laid off 43 employees on 2022-07-29.

Australian property technology startup Yabonza has collapsed and entered liquidation in July 2022, resulting in the effective layoff of its entire workforce. The company, which had grown to a team of 20 employees, had dwindled to just three staff members in its final months. The liquidation followed the termination of a key service agreement by the company's financier. Operating in the proptech sector, Yabonza offered a tech-driven property management platform but ultimately succumbed to financial pressures, marking another casualty in a challenging period for the Australian tech startup scene.

Bikayi, a Sequoia and Y Combinator-backed retail tech startup based in Bengaluru, has laid off more than half of its workforce in recent months. From a peak of 500-600 employees in February 2022, the company reduced its headcount to just 244 by late July, representing a layoff of over 50%. This drastic downsizing follows a severe revenue decline, dropping from approximately INR 1.9 crore in April 2022 to under INR 10 lakh by July, amid fraud allegations, an exodus of sellers, and critical issues with its business model targeting small retailers. Facing operational failures and mounting challenges, Bikayi is now pivoting to focus on enterprise clients, despite a highly competitive landscape.

Turntide representing approximately 20% of its workforce on 2022-07-28.

Ribbon, a real estate technology company known as a "Power Buyer," laid off 136 employees on July 28, 2022, which represented about one-third of its workforce. The layoffs were part of a strategic move to find a clear and achievable path to profitability amid significant market volatility and shifting housing demands. Despite recently expanding into eight new states and more than doubling its market footprint, the company faced challenges as post-pandemic housing behavior revealed affordability issues and softened first-time homebuyer demand. Ribbon, which had raised $150 million in Series C funding and operates in 15 states, partners with agents and lenders to help homebuyers make cash offers. CEO Shaival Shah emphasized the need to adapt to the new market reality while continuing to expand into new areas and develop tools like RibbonHub to meet evolving needs.

In July 2022, following its acquisition by Lemonade, auto insurtech company Metromile laid off approximately 60 employees, representing about 20% of its staff. The layoffs were part of a synergistic integration, as the combined entity could operate with fewer people than the two standalone companies required. Metromile, which had gone public via a SPAC in 2021, was valued at just under $137 million at the time, a significant decline from its previous highs. The cuts, common in such business combinations, reportedly affected roles in product, engineering, and design teams, among others.

Career Karma, a learning navigation platform, laid off 60 employees earlier this week in July 2022, which reportedly affected about a third of its staff. The company, which connects students with bootcamps and training programs to enter the tech industry, now has over 120 remaining employees. The layoffs primarily impacted marketing and recruitment teams, while the C-suite was unaffected. CEO Ruben Harris cited the need to extend the company's runway amid a prolonged economic recovery in the tech sector, estimating it could last 3 to 4 years. Following a $40 million Series B round earlier in 2022, the startup aims to stretch its cash reserves, now having over three years of operating funds without requiring additional funding.

Laybuy laid off 45 employees on 2022-07-28.

In July 2022, online program management company 2U laid off 20% of its workforce as part of a restructuring following its merger with edX. The layoffs, which affected hundreds of employees, were a response to enrollment declines across higher education and the challenges of integrating edX. Concurrently, 2U announced a strategic pivot, reducing its core revenue-sharing fee for degree programs from over 60% to 35% and offering incentives for partner institutions to lower tuition. This shift aims to align the company more closely with industry competitors and address long-standing criticism of its pricing model. The changes reflect broader tumult in the online education sector, where 2U remains a major player despite these adjustments.

Brainbase, a modern technology platform for intellectual property and licensing management, underwent a restructuring in 2022 that returned control to its founders. As part of this move, the company raised $1 million in new capital and achieved profitability. While specific layoff numbers were not disclosed, the company acknowledged its team became "a bit smaller" due to the restructuring, which was driven by slowed growth in the licensing industry amid economic challenges. The restructuring aimed to ensure long-term sustainability, allowing Brainbase to continue serving major global brands with its platform.

Vox Media laid off 39 employees representing approximately 2% of its workforce on 2022-07-27.

Electric vehicle manufacturer Rivian announced layoffs affecting 6% of its workforce in late July 2022. This reduction, part of a broader restructuring effort, was driven by challenging economic conditions and the company's strategic need to optimize costs and improve operational efficiency as it scaled production of its electric trucks and SUVs. The move impacted hundreds of employees within the competitive automotive and clean transportation industry, where Rivian operates as a notable, publicly-traded startup.

Coinsquare, a Toronto-based cryptocurrency exchange startup, has laid off approximately 30 employees, representing about 24 percent of its workforce, reducing headcount from 125 to around 95. The cuts, confirmed in mid-2022, stem from challenging market conditions, including decreased trading volumes amid the broader crypto downturn, as well as a strategic shift toward becoming a regulated crypto investment dealer in Canada. The company, which experienced rapid hiring during the previous year's market boom, also implemented executive pay cuts. This move aligns with a wider trend of layoffs across the crypto industry, as firms like Gemini and Coinbase also reduce staff. Coinsquare aims to refocus its team to meet regulatory requirements, following a 2020 settlement with the Ontario Securities Commission.

Israeli marketing technology company Skai, formerly known as Kenshoo, laid off approximately 30 employees in July 2022, representing about 4% of its workforce. The layoffs primarily affected staff from the acquired company Signals Analytics, whose product marketing was being discontinued. The company cited the global economic slowdown as the reason, stating the cost-cutting measures were necessary to sustain growth and profitability.

Dover laid off 23 employees representing approximately 30% of its workforce on 2022-07-26.

Fiverr, an Israeli freelancer platform, laid off 60 employees, representing 8% of its workforce, with half of the cuts occurring in Israel. The company, which had 787 employees at the end of 2021, cited a need to focus on its core business and adjust to macroeconomic changes as reasons for the layoffs. Announced in late July 2022, this move came amid a significant decline in Fiverr's share price, which had fallen 89% from its peak during the Covid pandemic. The layoffs were part of broader streamlining measures aimed at ensuring continued revenue growth and profitability in a challenging economic environment.

InDebted laid off 40 employees representing approximately 17% of its workforce on 2022-07-26.

Australian crypto gaming startup Immutable, valued at $3.5 billion, laid off at least 20 employees on July 26, 2022, affecting about 6% of its workforce. The cuts primarily impacted senior staff with core knowledge of its flagship NFT trading card game, Gods Unchained, effectively gutting the project's development team. The layoffs were announced during a company-wide meeting, with affected employees offered the chance to apply for other internal roles, though these were reportedly unsuitable. This move reflects broader contractions in the crypto and NFT industry, following similar workforce reductions at major firms like Coinbase and OpenSea, as the sector recedes from its 2021 highs.

Berlin-based proptech startup McMakler, considered a future unicorn, laid off at least 90 to 120 employees in late July 2022, shortly after a large company-wide summer party. The layoffs, primarily affecting HR and finance roles, along with non-renewed contracts and reduced internships, impacted roughly 10-12% of its workforce of about 1,000. Company leadership internally cited the tense real estate market and broader economic changes as reasons, stating the need for early cost control despite being a growth company. The sudden move surprised employees, even amidst existing expectations for austerity measures.

Shopify laid off 1,000 employees representing approximately 10% of its workforce on 2022-07-26.

Included Health representing approximately 6% of its workforce on 2022-07-25.

Pear Therapeutics laid off 25 employees representing approximately 9% of its workforce on 2022-07-25.

Zymergen laid off 80 employees on 2022-07-25.

Soluto, the Israeli R&D center of U.S. company Asurion, is shutting down, resulting in the layoff of all 120 employees. This closure, announced in July 2022, is part of Asurion's broader internal reorganization, which includes downsizing its global workforce and shifting its business focus toward the cellular market. The decision ends Soluto's operations, which began after its acquisition by Asurion in 2013. The affected employees, who worked in the tech industry, were offered extended benefits and support to find new jobs, with about 40 staff members remaining until the end of the year to assist with the transition.

Amazon aggregator Boosted Commerce, a Los Angeles-based company that acquires and scales third-party brands on Amazon, has laid off approximately 5% of its workforce. This reduction, affecting several VP and director-level positions primarily in brand and marketing, occurred in late July 2022 amid broader industry volatility. The company, which had raised $380 million and acquired 40 businesses, stated the layoffs were part of a strategic reallocation of resources for second-half initiatives. The move reflects a wider slowdown and consolidation in the Amazon aggregator sector, which saw explosive growth during the pandemic but has since faced funding declines and increased scrutiny of its business model.

Eucalyptus laid off 50 employees representing approximately 20% of its workforce on 2022-07-22.

Clarify Health, a healthcare analytics company, laid off approximately 90 employees, representing about 22% of its workforce, in a restructuring effort announced in early 2024. The company, operating in the health tech industry, cited a strategic shift to focus resources on core product development and achieve profitability amid broader market pressures. This reduction impacted teams across the organization as the company adjusted its operational scale to align with current business priorities.