Layoff Events

Lemonade laid off 52 employees on 2022-04-20.

In April 2022, Brazilian social commerce unicorn Facily laid off over 260 employees, representing more than 30% of its then 860-strong workforce. The cuts, particularly severe in the technology department, came less than six months after the company achieved unicorn status. This move was part of a broader reassessment of growth plans amid a troubled global economic scenario that restricted investment funds, especially for high-burn-rate startups. While Facily had previously announced expansion into Mexico, Colombia, and financial services, it cited a need for efficiency and evolution without directly commenting on the layoffs.

Loft laid off 159 employees on 2022-04-19.

QuintoAndar laid off 160 employees representing approximately 4% of its workforce on 2022-04-19.

Blend Labs, a publicly traded mortgage technology company, laid off approximately 200 employees, representing 10% of its workforce, as announced in an SEC filing. This fintech firm, which provides white-label software for major lenders, is implementing the cuts to reduce costs amid severe industry headwinds. With mortgage origination volumes expected to drop 35% in 2022 due to rising interest rates and inflation, Blend is aiming for about $35.4 million in annual savings. The layoffs, set to be completed in the second quarter, follow a significant net loss in 2021 and reflect broader challenges in the mortgage sector as refinancing activity declines.

Automox, a cybersecurity company specializing in automated endpoint management, announced a workforce reduction affecting approximately 11% of its employees. While the exact number of layoffs wasn't specified, the decision was made to evolve the business and sustain its growth more efficiently. The company expressed gratitude for the contributions of the departing staff and emphasized its ongoing commitment to customers and its platform. This restructuring reflects broader adjustments within the competitive IT and cybersecurity industry as companies optimize operations.

Halcyon Health representing approximately 100% of its workforce on 2022-04-15.

Humble, the game sales bundling and publishing platform, laid off an unspecified number of employees in April 2022 as part of a company restructuring. The job cuts specifically impacted staff in the engineering and customer service departments. The company stated the move was intended to streamline its e-commerce operations and re-invest in key growth areas to strengthen the future of the Humble Bundle business. This restructuring reflects ongoing adjustments within the digital game retail and publishing industry.

Ahead laid off 44 employees representing approximately 100% of its workforce on 2022-04-14.

Truepill on 2022-04-14.

Rad Power Bikes laid off 100 employees representing approximately 14% of its workforce on 2022-04-12.

Ecommerce unicorn Meesho, backed by SoftBank and valued at $4.9 billion, has laid off 150 full-time employees as part of a restructuring of its Meesho Superstore grocery delivery service. This move, occurring in early 2022, follows the company's massive $870 million fundraise in 2021, which included a $570 million round in September aimed at expanding the grocery business. The layoffs are attributed to scaling back after rapid pandemic-era growth and removing redundancies to boost efficiency, with the company emphasizing that its core marketplace business remains unaffected and continues to hire. Meesho, which serves millions of entrepreneurs and customers, reported significant revenue growth but also saw losses increase, prompting this adjustment to streamline operations.

Food52, a tech-focused food media and e-commerce company, laid off 10% of its staff in early April 2022 as part of a strategic pivot to strengthen its e-commerce operations. This restructuring followed an $80 million investment from the Chernin Group. While the exact number of affected employees wasn't specified, the move came despite the company reporting doubled revenue and achieving profitability in 2020. The layoffs, which left staff feeling "gut-punched," are part of a broader shift that includes recent acquisitions like Schoolhouse and Dansk, and plans to expand into physical retail with pop-up shops and brick-and-mortar stores.

Edtech startup Unacademy has laid off around 1,000 employees, including both permanent staff and contract educators, as part of a major cost-cutting initiative. This reduction, carried out over recent weeks, represents about 17% of its then 6,000-strong workforce. The layoffs, affecting roles in sales, business development, and content, stem from efforts to reduce cash burn amid a tightening funding environment and an economic slowdown. The Bengaluru-based company, valued at $3.4 billion, aims to achieve profitability by year-end while focusing on its core test-prep business and group firms.

Goodfood, a Montreal-based meal-kit and grocery-delivery company, laid off 70 employees this week, representing about 2.8% of its workforce, which now stands at 2,500. This is the third round of layoffs in six months, reducing total staff by nearly 25% since the end of its last fiscal year. The company is also closing its Ontario distribution center, consolidating operations into Quebec. Executives cited inflation, supply-chain disruptions, and labor shortages driven by the pandemic and geopolitical crises as reasons for the cuts, aiming to accelerate the path to profitability. The layoffs occurred in early April 2022, as the publicly traded company navigates challenges in the competitive food delivery industry.

Workrise laid off 450 employees on 2022-04-05.

Fast representing approximately 100% of its workforce on 2022-04-05.

BitMEX laid off 75 employees representing approximately 25% of its workforce on 2022-04-04.

Legible, a Vancouver-based ebook platform, has laid off 23 employees, representing over a third of its 60-person workforce, effective April 4. The publicly-traded company cited a need to streamline operations and reduce its annual burn rate by nearly $2 million. This move makes Legible the second publicly-listed Canadian tech firm to announce significant layoffs recently, following Thinkific. The decision comes amid a challenging capital-raising environment, marked by falling share prices and broader economic pressures like inflation and rising interest rates, which have particularly impacted unprofitable, high-growth tech companies.

Sea, the Singapore-based tech giant, conducted a significant round of layoffs affecting hundreds of employees across its e-commerce, gaming, and fintech divisions in early 2024. While exact figures were not officially disclosed, reports indicate the cuts impacted several hundred staff, representing a small percentage of its global workforce of over 30,000. The move is part of a broader effort to streamline operations and achieve sustained profitability amid challenging market conditions in the competitive internet and technology industry.

In February 2022, Berlin-based AI startup Rasa laid off 59 employees, representing about 40% of its workforce, in a single day. The company, which had gained attention as a German Silicon Valley hopeful and was the first German investment of Andreessen Horowitz, faced a critical financial situation. To prevent running out of money, Rasa implemented these mass layoffs as a necessary restructuring measure. The move reflects broader challenges in the tech startup landscape, where even promising ventures must navigate funding pressures and adjust their operational scale to ensure survival.

Gopuff laid off 450 employees representing approximately 3% of its workforce on 2022-03-29.

Vancouver-based online course platform Thinkific is laying off 100 employees, representing one-fifth of its 499-person team. The cuts, announced after the company reported a $26.4 million USD net loss last year, are part of a restructuring to increase efficiency and reduce costs. Affected roles span general administration, customer support, management, and targeted reductions in research & development and sales & marketing. This move follows a period of rapid post-IPO growth, where headcount nearly doubled since early 2021, but was accompanied by mounting losses and a significant drop in share price. The company, which went public on the Toronto Stock Exchange in April 2021, provides cloud-based software for entrepreneurs to create and sell online courses.

Bengaluru-based furniture rental startup Furlenco has laid off approximately 180 employees as part of cost-cutting measures to achieve profitability ahead of a planned IPO. The layoffs, which occurred recently, primarily impacted customer-facing roles, with around 95% of those affected working in customer support and similar functions. The company, which operates under House of Kieraya, cited a strategic shift from telephone-based to app-based orders, leading to downsizing in certain areas. Despite raising significant funding last year, Furlenco is focusing on becoming a more tech-driven and automated business to reduce losses. The startup has also temporarily halted operations in Kolkata and some other cities as it restructures.

Grove Collaborative, a sustainable personal care and home goods company, laid off approximately 17% of its corporate workforce in late March 2022. This restructuring occurred as the company prepared for its upcoming public listing via a SPAC merger, which valued it at $1.5 billion. While Grove reported a revenue increase to $383.7 million for 2021, the figure slightly missed its target. The layoffs appear to be a strategic move to streamline operations and optimize resources ahead of its transition to becoming a publicly traded entity on the New York Stock Exchange.

Swedish audiobook giant Storytel laid off 100 employees in March 2022, representing over 10% of its workforce, as part of a strategic shift. This move followed a year of losses attributed to aggressive and costly international expansion into 25 markets that underperformed. Founder and CEO Jonas Tellander had also recently stepped down. The company, which has around 2 million subscribers, is now refocusing on fewer, more mature markets like the US to improve profitability, while its strong Nordic operations continue to perform well.

Curology laid off 150 employees on 2022-03-16.

Talis Biomedical, a biotechnology company focused on diagnostic testing, conducted a significant workforce reduction in March 2022. The layoffs affected approximately 30% of its employees, which was reported to be around 60 people out of a total workforce of roughly 200. This decision was part of a strategic restructuring aimed at preserving capital and extending the company's financial runway, as it faced challenges in the competitive diagnostic market and sought to prioritize key development programs. The move reflects broader pressures in the biotech industry, particularly for smaller-scale firms navigating post-pandemic shifts.

Social commerce startup Trell is reportedly planning to lay off approximately 300 employees in March 2022, which represents about 50% of its total workforce. This significant downsizing, primarily affecting content moderation and operations teams, comes amidst a contentious review by audit firm EY into alleged financial irregularities by the co-founders, including accusations of fund misappropriation. The layoffs are part of a broader company restructuring, driven by investor concerns over cash burn and governance issues, despite Trell having raised around $62 million and achieving a valuation near $130 million. The situation highlights internal conflicts between investors and co-founders within India's competitive startup landscape.

Knock laid off 115 employees representing approximately 46% of its workforce on 2022-03-15.

Sezzle representing approximately 20% of its workforce on 2022-03-10.

Adaptive Biotechnologies laid off 100 employees representing approximately 12% of its workforce on 2022-03-08.

Hyperscience laid off 100 employees representing approximately 25% of its workforce on 2022-03-03.

WeDoctor laid off 500 employees on 2022-03-02.

Wish laid off 190 employees representing approximately 15% of its workforce on 2022-03-01.

Utah-based fitness company iFIT has conducted another round of layoffs as it navigates financial challenges, including settling a significant lawsuit and seeking additional capital. The company, which produces connected fitness equipment and content, has placed its once-anticipated initial public offering on indefinite hold. These layoffs follow a previous round just weeks before Christmas, despite earlier claims of strong performance. The exact number of employees affected in this latest reduction was not specified, but the cuts reflect ongoing restructuring efforts within the competitive home fitness industry.

OkCredit, a Bengaluru-based fintech startup backed by investors like Tiger Global and Lightspeed, has laid off approximately 30-40 employees over the past month, primarily affecting backend, tech, and engineering teams. This reduction comes as the company shifts its focus toward strengthening fintech initiatives and growth channels, following the launch of its e-commerce enabler app, OkShop, in 2020. The layoffs are also attributed to significant financial challenges, with the company reporting expenses of INR 114.6 crore against a mere INR 3.79 lakh in sales revenue for FY21, where employee benefits constituted a substantial portion of costs. Operating in the competitive fintech industry, OkCredit provides digital bookkeeping solutions for small businesses and has raised $84.2 million to date.

Virgin Hyperloop laid off 111 employees representing approximately 50% of its workforce on 2022-02-21.

Indian edtech startup Lido Learning has laid off between 150 and 200 employees, representing a significant portion of its workforce, following severe financial difficulties. The Mumbai-based company, which had raised $10 million just five months prior in September 2021, informed staff in early February that it could not pay salaries for January and the first week of February, attributing the crisis to a failed funding deal. Employees were reportedly dismissed without notice. The startup, operating in the competitive K-12 after-school tutoring sector, is now seeking a new funding round or potential acquisition while struggling to meet its payroll commitments to both full-time staff and contract teachers.

Trustly laid off 120 employees on 2022-02-17.

In February 2022, Brazilian foodtech startup Liv Up laid off over 100 employees, representing 15% of its workforce. This restructuring followed investments that did not yield the expected returns, prompting a significant cost reduction. The company, which had reported having 800 employees in September 2021, stated the move was to create a leaner operation and focus resources on projects better aligned with the current challenging macroeconomic reality and shifting consumer habits. The layoffs were part of an effort to streamline the business and concentrate on building its position as a major healthy food brand in the country.

In February 2022, Utah-based real estate technology startup Homie conducted companywide layoffs, reducing its workforce by 28%, which impacted 119 employees across its operations in several western states. The cuts were a response to a roiled real estate market characterized by record low housing inventories and intense competition, making 2021 and early 2022 exceptionally challenging for buyers and sellers. CEO Johnny Hanna described the decision as extremely difficult, citing unprecedented market conditions that forced the company to make critical operational changes to navigate the downturn.

Daily Harvest laid off 60 employees representing approximately 20% of its workforce on 2022-02-10.

In February 2022, virtual events platform Hopin laid off 138 full-time employees, representing 12% of its staff, along with some contractors. The venture-backed unicorn, which had grown rapidly during the pandemic and completed several acquisitions including a $250 million purchase of StreamYard in 2021, cited a need for greater efficiency and sustainable growth. CEO Johnny Boufarhat explained the cuts aimed to address overlaps and duplications that emerged from its fast expansion, marking a shift from its previous aggressive scaling and a $400 million raise at a $5.65 billion valuation just months earlier. The company provided severance, benefits, and job-hunting support to affected employees.

Peloton laid off 2,800 employees representing approximately 20% of its workforce on 2022-02-08.

Proptech startup Rhino, which offers an alternative to security deposits for renters, laid off 57 employees on February 4, 2022, representing over 20% of its staff. This reduction leaves the company with 198 employees. The New York-based firm, founded in 2017, cited market volatility and a strategic push to reach profitability faster as key reasons for the cuts. The layoffs occurred just a year after Rhino raised $95 million in a pre-IPO round, highlighting the pressure on proptech startups to adapt to a challenging macroeconomic climate. While many affected were recent hires, the company continues to recruit for key technology roles.

Gopuff, the rapid-delivery startup, has laid off approximately 100 employees from its warehouse and operations teams as part of a restructuring effort. This reduction affects about 1% of its total workforce of 10,000. The company also paused several plans to open new U.S. warehouses. These cost-cutting measures, implemented in late January 2022, are aimed at streamlining operations ahead of a potential IPO later in the year. The layoffs primarily targeted district managers and related support teams, shifting Gopuff's model toward a more tech-driven approach similar to Amazon's, as the company reevaluates its expansion strategy in the competitive on-demand delivery industry.

On January 26, 2022, beauty brand Glossier laid off 80 corporate employees, representing about one-third of its corporate workforce, with the cuts primarily impacting its technology team. The company, which operates primarily as a direct-to-consumer e-commerce business in the beauty industry, cited a strategic shift to rely more on external technology partners rather than maintaining certain platforms internally. Founder Emily Weiss acknowledged in an internal email that the company had over-hired and become distracted by projects outside its core beauty focus. This move came despite Glossier's frequent emphasis on its tech-driven approach and followed a previous round of layoffs in 2020 when it closed all physical stores. The company, valued at $1.8 billion, continues to generate most of its revenue online.

Root Insurance laid off 330 employees on 2022-01-20.

Protonn, a tech startup co-founded by former Flipkart executives, has completely shut down its operations and laid off all its employees. The Bengaluru and San Francisco-based company, which had raised $9 million in seed funding in July 2021, was unable to achieve a sustainable product-market fit for its platform designed to help independent professionals launch and manage their businesses online. Despite the challenges exacerbated by the COVID-19 pandemic, the founders could not agree on pivoting the business model, leading to the decision to cease operations and return the full capital to investors, including Matrix Partners and notable angels like Binny Bansal. The shutdown occurred around January 2022, just six months after securing funding.