Layoff Events

BeyondMinds, an Israeli enterprise AI startup, has shut down and laid off all 65 employees after advanced acquisition talks with a tech giant collapsed. The company, which had raised $30 million and specialized in automated machine learning solutions, decided to cease operations due to shifting market conditions that derailed a potential sale. CEO Roey Mechrez confirmed the closure on May 23, 2022, noting that the entire workforce, primarily in R&D along with finance, HR, and sales roles, was affected. This event highlights growing concerns about valuation crises impacting the broader startup ecosystem.

Argentinian cryptocurrency exchange Buenbit has laid off approximately 45% of its workforce, affecting around 80 employees, as part of a restructuring effort in response to the broader tech industry downturn. The company, which operates in Argentina, Mexico, and Peru, now has a team of 100 people. This significant reduction, announced in May 2022, is aimed at achieving a self-sustaining business model by focusing on existing markets and halting previous expansion plans into countries like Colombia and Brazil. The decision, unrelated to the collapse of UST and Luna, reflects the challenging funding environment and a strategic shift toward efficiency amid a changing macroeconomic landscape.

Klarna, the Swedish fintech giant, is laying off approximately 700 employees, which represents about 10% of its global workforce of around 7,000. The decision, announced by CEO Sebastian Siemiatkowski in May 2022, is a response to a challenging capital market environment for fast-growing tech companies with high losses. The layoffs, affecting roles across the organization and primarily in Europe, are part of a broader cost-cutting trend in the Swedish tech sector, with companies like Trustly and Storytel also making reductions. This move coincides with reports that Klarna is seeking new funding at a significantly lower valuation than its previous peak, as the company aims to chart a clearer path to profitability.

Bengaluru-based healthtech startup MFine has laid off approximately 600 employees this week, which constitutes about 75% of its workforce, previously estimated at around 800 people. The drastic cuts, communicated via Google Meet, were primarily driven by severe financial difficulties, with the company reportedly exhausting its funds and a potential future deal falling through. Despite recent hiring activity and project assignments, most of the sales and marketing teams have been dissolved. MFine, founded in 2017 and last valued at around $450 million, offers telemedicine services and had raised close to $97 million to date. The company plans to provide severance, including 20 days' salary immediately and the remainder within 60 days, though employees express uncertainty due to a lack of written confirmation.

On May 20, 2022, smart access and security company Latch, Inc. announced a workforce reduction affecting approximately 130 employees, which represents about 28% of its full-time staff. The company, which provides a full-building enterprise SaaS platform, stated the layoffs were necessary to better align its staffing and expenses with current sales volumes and the challenging macroeconomic environment, citing ongoing construction delays and supply chain issues. This move is part of a broader reorganization of its sales, marketing, and product departments aimed at accelerating the path to profitability and achieving self-sustaining free cash flow. Latch expects the restructuring to result in significant annual cost savings and anticipates incurring related cash charges in the second quarter of 2022.

Outside Inc., a media company that bundles 36 publishers including titles like Outside Magazine, Backpacker, and Ski, laid off approximately 15% of its workforce, affecting 85 to 90 employees out of a total of 580. The layoffs, announced on Friday, are part of a restructuring to transition into a primarily digital company, driven by a softening advertising market and an ambitious expansion during the pandemic era. As part of this shift, the company will phase out three print titles—Beta, Peloton, and Oxygen—over the next six months and reduce the print frequency of most other publications to just one or two special issues per year, with the exception of its flagship Outside Magazine.

Skillz, a mobile gaming platform, conducted layoffs in May 2022 as part of a broader wave of tech workforce reductions. The company laid off approximately 10% of its employees, which amounted to around 70 people from its total workforce of roughly 700. This move was attributed to challenging market conditions and a strategic shift to focus on profitability amid slowing growth. The layoffs reflect the wider industry trend at the time, where many tech companies, both public and private, were adjusting their strategies due to economic pressures. Skillz, operating in the competitive gaming industry, aimed to streamline operations to navigate the uncertain market environment.

In May 2022, SoftBank-backed used car e-commerce platform Cars24 laid off 600 employees, representing a little under a fifteenth (approximately 6-7%) of its total workforce. The Gurugram-based company framed the move as part of regular performance-linked exits, but the layoffs, primarily affecting operations and marketing, are widely seen as a cost-cutting measure to conserve cash amid a difficult funding environment. This occurred despite Cars24 having raised $850 million in the preceding eight months, including a $400 million round in late 2021 that valued the company at $3.3 billion. The Indian used car industry is growing, but Cars24, like its competitors, remains unprofitable, contributing to a broader trend of layoffs across Indian startups during this period.

In May 2022, Indian ed-tech unicorn Vedantu laid off 424 employees, representing about 7% of its workforce. This followed a previous round of 200 layoffs earlier that month, bringing the total to 624 employees let go within weeks. The company, which had experienced rapid growth during the pandemic, cited a challenging external environment including the war in Europe, recession fears, and inflationary pressures, alongside a slowdown in demand for online learning as schools reopened offline. To ensure long-term sustainability, Vedantu aimed to extend its capital runway for 30 months, reduce customer acquisition costs, and refocus on core areas, leading to the restructuring and job cuts. This move was part of a broader trend affecting Indian startups, with nearly 2,500 employees laid off across various companies during that period.

Swedish digital healthcare company Kry is laying off approximately 100 employees, which represents about 10% of its office staff. The layoffs affect personnel at the headquarters, while the company's roughly 2,000 healthcare employees across Sweden and Europe are not impacted. This decision, part of a broader trend of cutbacks in the tech sector during 2022, is attributed to a need for more careful capital management. Despite the reductions, Kry plans to continue hiring in its healthcare services and expanding its physical clinics in Sweden and operations in France and the UK, aiming to have a larger total workforce by year's end. The company, Europe's largest digital healthcare provider, cites a shift in focus back to core operations and sustainable investment as reasons for the restructuring.

Netflix is laying off approximately 150 employees, representing less than 2% of its 11,000-person workforce, with most cuts occurring in the U.S. The layoffs, confirmed in May 2022, are a direct response to the company's slowing revenue growth and its first subscriber loss in a decade, as reported the prior month. To manage costs, Netflix is implementing these reductions, which are driven by business needs rather than individual performance. The streaming giant, a major player in the technology and entertainment industry, is also exploring new strategies like ad-supported tiers and cracking down on password sharing to reignite growth. These cuts reflect a broader trend of contraction within the tech sector.

Picsart laid off 90 employees representing approximately 8% of its workforce on 2022-05-17.

Zulily on 2022-05-16.

Brazilian restaurant management startup Zak laid off approximately 40% of its workforce, affecting up to 100 employees, in a restructuring move announced via videoconference on Friday, May 13, 2022. The layoffs primarily impacted the operations, product, marketing, and sales departments. Founded in 2018 and based in São Paulo, Zak digitizes manual restaurant processes like cash management. Despite raising R$80 million in a 2021 funding round led by Tiger Global with plans to double its team, the company cited the need to restructure as the reason for the cuts, which occurred during a wave of layoffs at Brazilian unicorns.

Thirty Madison laid off 24 employees on 2022-05-14.

AliExpress Russia, the joint venture of Alibaba Group, has laid off approximately 40% of its staff following Russia's invasion of Ukraine, which severely disrupted its cross-border e-commerce operations. The cuts, implemented by May 2022, reflect the significant impact of the war and international sanctions on its business, forcing a sharp reversal from earlier expansion plans in what was its largest market.

CommonBond, a financial technology company, laid off 22 employees as part of a strategic shift to focus exclusively on solar financing, ceasing its student loan origination business. The layoffs, announced in a LinkedIn post by CEO David Klein, were a direct result of this business model pivot. While the exact total workforce and percentage affected were not disclosed, the move underscores the company's redirection towards the renewable energy sector, where its solar business had become its largest and fastest-growing segment. The transition was effective as of the announcement, with student loan operations winding down by June 15.

Subspace, a technology startup focused on improving internet connectivity for data-rich applications, announced the shutdown of its global network and business operations on May 13, 2022. The closure effectively resulted in layoffs for its entire team, as the company ceased all activities. Founded in 2018 and launching service in March 2020, Subspace aimed to support low-latency needs for emerging sectors like web 3.0 and the Metaverse. However, shifting market conditions and financial constraints made it impossible to scale and meet customer demands, forcing the company to wind down.

Tripwire on 2022-05-12.

Zwift, a leading virtual cycling and running platform, announced significant layoffs on May 12, 2022, affecting approximately 150 employees. This workforce reduction, impacting various divisions, was part of a broader restructuring to "right-size the business." The company simultaneously canceled its plans to launch a smart bike and trainer hardware, citing the challenging macroeconomic environment and the normalization of indoor cycling sales. This strategic shift away from hardware development, which Zwift described as a "pause," led to the downsizing, particularly within the hardware division. The move aligns with similar cost-cutting measures recently taken by competitors like Wahoo and Peloton in the connected fitness industry.

In May 2022, Scott Galloway's edtech startup Section4 laid off 32 employees, representing a quarter of its staff. The company, which had 142 employees at the time, conducted the layoffs across all teams, with a significant impact on the product department. The restructuring was driven by financial mismanagement, a lack of product-market fit, and over-hiring, as the company struggled with consumer growth. Section4, which offers affordable, virtual business school-style courses, shifted its focus toward enterprise clients, citing the high production costs of its core offerings. The layoffs were part of a broader post-pandemic reset in the tech industry.

DataRobot laid off 70 employees representing approximately 7% of its workforce on 2022-05-11.

Latch, a smart access technology company, laid off employees in May 2022 as part of a broader wave of tech industry cutbacks. While the exact number of affected employees at Latch was not specified in this report, the layoffs occurred during a period of widespread workforce reductions across startups and tech firms, driven by economic recalibration and strategic shifts. The company, operating in the proptech industry, was adjusting to market pressures that prompted many businesses to streamline operations. This move reflects the challenging environment for tech companies at the time, as they navigated funding changes and evolving business priorities to ensure sustainability.

On May 10, 2022, the U.S. used-car retailer Carvana announced it would lay off 2,500 employees, a significant workforce reduction as the company grapples with severe overcapacity and mounting financial losses. The layoffs, part of a plan to realign staffing and expenses with declining sales volumes, come after Carvana reported a net loss of $506 million in the first quarter of 2022, despite a 56% revenue increase. The company had expanded its operations anticipating higher demand, but faced with a sharp downturn, it is now cutting roughly 12% of its workforce. Carvana's executive team is forgoing salaries for the remainder of the year to help fund severance packages, which include four weeks of pay plus additional compensation based on tenure.

Doma, a title insurance and technology company, laid off 310 employees, representing 15% of its workforce, in May 2022. This reduction, primarily affecting fulfillment roles, was a direct response to a severe downturn in the mortgage market, particularly a 63% industry-wide drop in refinance transactions. Despite gaining market share, Doma reported a significant net loss of $50 million in Q1 2022, with revenue declining 12% year-over-year. The company is now refocusing resources on purchase transactions and its technology platform to achieve profitability by 2023 amid ongoing market challenges.

In May 2022, UK-based travel and entertainment technology company Pollen laid off approximately 200 employees, representing about one-third of its workforce. This significant reduction occurred just weeks after the company announced a $150 million Series C funding round. The layoffs were part of a broader cost-cutting initiative amid a cooling tech market, reflecting challenges in the events and travel tech industry. Pollen, which operated as a two-sided marketplace connecting music festivals with travelers, faced mounting difficulties that later culminated in its bankruptcy, leaving many employees unpaid.

French unicorn Meero, a platform connecting professional photographers with businesses often called the "Uber of photography," has quietly conducted a massive layoff, cutting nearly 50% of its workforce over two years. The company, which had around 700 employees pre-pandemic, now employs between 400 and 450 people, indicating around 350 jobs were eliminated. This downsizing, attributed to the financial impact of COVID-19, marks a significant retreat from its earlier aggressive growth targets. Founded in 2016 and backed by major investors after a historic $230 million funding round in 2019, Meero operates in the tech/platform industry, serving clients like Booking.com and Deliveroo. The layoffs, confirmed through CEO statements in mid-2022, reflect the challenges even well-funded startups face in sustaining rapid expansion.

Vroom laid off 270 employees representing approximately 14% of its workforce on 2022-05-09.

divvyDOSE laid off 62 employees on 2022-05-06.

Reef Technology, a Miami-based tech company specializing in ghost kitchens and parking management, is laying off 750 employees, which represents 5% of its global workforce. This decision, announced in a letter from CEO Ari Ojalvo, is part of a strategic shift to focus on profitability amid economic challenges, including rising inflation and disruptions in its sectors. The company will concentrate on its core businesses—ghost kitchens and parking—while scaling back other ventures like health clinics and vertical farms. Founded in 2013 and backed by significant investments, including from SoftBank, Reef has faced operational hurdles but continues to pursue growth with a renewed emphasis on brick-and-mortar locations.

On Deck, a tech company that connects founders with capital and advice, laid off 72 employees, representing 25% of its staff, on May 5, 2022. The cuts primarily affected operations and investing roles, with severance packages including eight weeks of salary and 12 weeks of healthcare. Co-founders confirmed the layoffs, citing a need to support departing team members and refocus the business. The company, which launched in 2019 and had raised a $20 million Series A in 2021, faced financial pressures from missed sales targets, aggressive hiring, and a reduced fundraise—originally targeting $100-$150 million but landing around $40 million. As a result, On Deck is scaling back its ODX accelerator program and aims to extend its runway, which was down to nine months prior to the cuts.

Progrexion, a Salt Lake City-based credit report repair company owned by private equity firm H.I.G. Capital, laid off over 100 employees in May 2023. The cuts affected multiple departments, though the exact percentage of the workforce impacted remains unclear. Operating in the financial services and technology sector, Progrexion, which owns brands like Credit.com and CreditRepair.com, conducted these layoffs amidst a broader trend of workforce reductions across U.S. tech and financial companies. This move reflects the challenging market environment many firms faced in early 2023, following a period of rapid hiring and growth in previous years.

In May 2022, Indian edtech unicorn Vedantu laid off 200 employees, representing about 3.5% of its total workforce of over 6,000. The cuts included 120 contractual staff and 80 full-time employees, predominantly assistant teachers from academic teams. The company cited a routine annual "load rebalancing" process at the start of the academic year, driven by efforts to reduce course costs and integrate more technology—like AI and voice synthesis—amid tapering demand for online education as offline centers reopened. This restructuring occurred within a broader trend of startups pruning costs due to tightened late-stage funding and investor pressure to prioritize profitability over cash burn. Vedantu noted it was simultaneously hiring over 1,000 employees in other areas, including more than 100 for similar academic roles.

Ideoclick laid off 40 employees on 2022-05-04.

B2B financial services startup MainStreet laid off approximately 50 employees, representing about one-third of its roughly 150-person workforce. The cuts, announced in early May 2022, were driven by difficult market conditions and a strategic push toward profitability. CEO Doug Ludlow cited an "incredibly rough market" that could worsen, prompting the restructuring to ensure the company's self-sustainability. MainStreet, which grew rapidly after a $60 million Series A funding round in 2021, faced challenges as revenue growth failed to match its increased spending and headcount, exacerbated by market turbulence following Russia's invasion of Ukraine.

Bizpay representing approximately 30% of its workforce on 2022-05-04.

Cameo laid off 87 employees representing approximately 25% of its workforce on 2022-05-04.

Vise laid off 25 employees on 2022-05-04.

Grocery delivery startup SEND, which operated in Australia, collapsed into voluntary administration in early May 2022. The company, founded during the COVID-19 pandemic, employed an estimated 300 staff across multiple sites in Sydney and Melbourne. Its collapse resulted in all employees being laid off, representing 100% of its workforce. Administrators cited a "sizeable cash burn" used to grow market share and unique financing challenges with international investors as key reasons for the failure. SEND had secured a $3.1 million capital raise in 2021 but ultimately could not sustain operations. The tech startup, which offered ultra-fast grocery deliveries, ceased operations entirely following the administration appointment.

In May 2022, Amazon aggregator Thrasio, a startup valued between $5 billion and $10 billion, initiated layoffs affecting a portion of its workforce. The company, which acquires and consolidates third-party Amazon sellers, simultaneously announced a leadership change, appointing former Airbnb president and Amazon executive Greg Greeley as its new CEO. These moves come after a turbulent period for Thrasio, including executive departures and delays in its planned SPAC listing, reflecting broader challenges within the aggregator business model. The layoffs underscore the company's strategic adjustments amid shifting market conditions.

Israeli grocery delivery startup Avo is laying off 500 employees, which represents two-thirds of its global workforce of 750. The layoffs, announced in May 2022, include 350 employees in Israel. This drastic reduction comes after the company failed to raise $70-100 million in funding due to shifting market conditions. Originally focused on delivering groceries to office buildings, Avo expanded to residential deliveries during the COVID-19 pandemic. However, after finding its operations in New York unprofitable and facing a post-pandemic market contraction, the company decided to return to its original business model. Consequently, it is cutting staff across operations and head office roles while seeking a buyer for its home delivery segment.

Noom, the weight loss and wellness app, is laying off a significant portion of its coaching staff as part of a strategic shift. The company is letting go of approximately 495 coaches in total, with 180 already departed and 315 more expected soon. This restructuring is due to a move from text-based chat support to a scheduled video call system, which reduces the need for a large, on-demand workforce. The layoffs come after a period of rapid growth and substantial venture funding during the pandemic. Remaining employees are expected to handle increased workloads. The company, which operates in the health tech industry, has faced criticism regarding its dietary recommendations and advertising practices even as it expanded into mental health coaching.

Domestika, a Spanish-founded online learning platform valued as a unicorn, is facing allegations of a disguised mass layoff. Affected employees claim approximately 150 workers were dismissed globally in April 2022, including at least 70 in Spain, which would represent roughly 19% of its reported global workforce of about 800. The company's CEO has disputed this scale. The layoffs, conducted remotely via phone, followed a period of extraordinary pandemic growth and a recent $110 million funding round. Thirty-three dismissed employees in Spain have united in a legal challenge, arguing the firings constitute an unlawful collective dismissal. The company operates in the edtech industry.

Netflix, the global streaming giant, laid off 25 full-time staffers and contractors from its global marketing team, which comprises over 500 employees, representing a cut of about 5%. This move occurred on Thursday, April 28, 2022, as part of a larger reorganization within the marketing department, aimed at cutting costs and simplifying structure. The layoffs specifically impacted Tudum, Netflix's fan website and marketing arm launched just months prior in December 2021. The restructuring also included executive promotions and departures. While planned before Netflix's recent subscriber loss, these changes reflect the company's ongoing adjustments in the competitive streaming industry.

In April 2022, Wahoo Fitness, a fitness technology company, laid off approximately 50 employees as part of strategic changes to support its growth and development. The layoffs occurred across various departments, including device, firmware, and the Wahoo SYSTM platform. This decision coincided with the company's acquisition of the virtual cycling platform RGT Cycling and the launch of its new integrated subscription service, Wahoo X. The move was described as necessary to maintain focus on innovation and evolving athlete needs, following a period of increased hiring during the COVID-19 pandemic's surge in demand for home fitness equipment.

Canadian embedded commerce startup Bonsai laid off 29 employees, representing about 34% of its 84-person team, on April 21. This restructuring occurred less than a month after the company secured $21 million in Series A funding. CEO Saad Siddiqui stated the layoffs were a proactive shift in operating philosophy to reallocate capital toward customer acquisition and hyper-growth, moving away from a product-building focus. The cuts, which affected product, engineering, and other departments, were attributed to discontinuing certain internal features, not market conditions. Bonsai provides white-labeled commerce tools for media publishers like BuzzFeed and Vox Media.

Robinhood, the retail brokerage firm, announced on Tuesday that it is laying off approximately 9% of its full-time workforce, affecting about 342 employees out of the 3,800 reported at the end of December. CEO Vlad Tenev cited "duplicate roles and job functions" following rapid expansion last year as the reason, stating the move aims to improve efficiency and responsiveness amid changing customer needs. The company, which rose to prominence during the 2021 GameStop frenzy, has seen its stock struggle and user numbers decline, with shares falling over 5% after the announcement. This restructuring reflects broader challenges in the fintech industry as Robinhood prepares to release its first-quarter results.

Clyde laid off 22 employees on 2022-04-25.

Sigfox laid off 64 employees on 2022-04-25.

Xiaohongshu laid off 180 employees representing approximately 9% of its workforce on 2022-04-21.