Layoff Events

SynapseFI laid off 63 employees representing approximately 48% of its workforce on 2020-06-12.

ScaleFocus laid off 120 employees representing approximately 10% of its workforce on 2020-06-11.

In June 2020, the office furniture startup Branch, based in New York and backed by venture capital, conducted a small layoff as a direct result of the COVID-19 pandemic. The company, which had an 11-person team, laid off 3 employees, reducing its workforce to 8 people—a reduction of approximately 27%. This move followed a sudden and severe drop in revenue, from about $800,000 in early March to zero, as offices closed and remote work began. Facing a near-collapse, Branch pivoted its business model from selling traditional office furniture to focusing on home office setups, targeting both individual consumers and corporate clients like Google and Shopify. This strategic shift to the growing work-from-home trend was an attempt to salvage the business during the industry-wide crisis.

Her Campus Media laid off 10 employees representing approximately 18% of its workforce on 2020-06-10.

Ethos Life laid off 18 employees representing approximately 14% of its workforce on 2020-06-05.

The Athletic laid off 46 employees representing approximately 8% of its workforce on 2020-06-05.

Outdoorsy, a peer-to-peer RV rental startup founded in 2015, has not announced any layoffs. The company, which operates in the travel and sharing economy industry, has recently seen a significant surge in business due to the COVID-19 pandemic. In late March 2020, Outdoorsy experienced a low point with many cancellations, but bookings have since roared back, increasing by 2,645% by early June 2020. The company, which has raised $88 million in venture funding, reports that rental durations have extended from an average of six days to over nine days, and 88% of bookings in May 2020 were from first-time renters. This growth reflects a trend of Americans seeking safer, socially-distanced travel options like RV rentals during the pandemic.

In mid-May 2020, the SoftBank-backed software startup Builder.ai, formerly known as Engineer.ai, laid off 39 employees, representing just under 14% of its global workforce of 280. The layoffs, announced via a company Zoom call, primarily affected the Los Angeles office, with some UK staff also placed on furlough. The company cited the economic downturn caused by the coronavirus pandemic, noting a drop in orders despite anticipating a future shift toward digital solutions. To navigate the challenging period, Builder.ai also implemented temporary salary reductions for remaining employees and established a support fund. The startup, which offers an AI-assisted platform for app development, had rebranded in late 2019 and operates across India, London, and Los Angeles.

In June 2020, network security firm Lastline was acquired by VMware, leading to significant layoffs as part of the integration process. Approximately 40% of Lastline's workforce, around 50 employees, were let go. The company, which had raised about $52.2 million since its 2012 founding, specialized in cloud-native threat detection services for network security. The acquisition aligned with VMware's strategy to enhance its security offerings for hybrid and multi-cloud environments, marking its third security purchase that year. The deal, expected to close by the end of July 2020, aimed to provide customers with more comprehensive security solutions but resulted in workforce reductions to streamline operations.

Credit Sesame, a Mountain View-based fintech startup, laid off 22 employees on June 3, 2020, representing nearly 14% of its 160-member workforce. The company, which provides credit score monitoring, loan comparison, and mortgage refinancing services, cited the impact of the COVID-19 pandemic as the primary reason. Restrictions imposed by credit suppliers during the economic downturn squeezed its core credit business, forcing the difficult decision to ensure long-term sustainability. Despite being valued at $251 million in 2018 and aiming for a $1 billion valuation, the pandemic disrupted its plans, including a potential public listing that year.

In June, London-based digital bank Monzo laid off 120 employees in the U.K., following an earlier round in April that affected 165 staff in Las Vegas. These cuts, impacting hundreds across multiple departments including engineering and design, come as the fintech company faces reduced revenue from consumer spending pullbacks, which lowers interchange fees from its debit card products. The company, which also furloughed 295 U.K. employees previously, recently raised £60 million at a significantly lower valuation. While the exact total workforce isn't specified, these layoffs reflect broader challenges in the tech and fintech sectors amid economic pressures.

SpotHero laid off 40 employees representing approximately 21% of its workforce on 2020-06-03.

In June 2020, aviation startup Kitty Hawk, backed by Google co-founder Larry Page, laid off most of the 70-person team from its Flyer program, an ultralight electric flying car project. The company shifted its focus to scaling Heaviside, a quieter, faster autonomous electric aircraft. While a few employees transitioned to the Heaviside team, the majority were let go as part of this strategic pivot. The laid-off workers received substantial severance, including at least 20 weeks of pay, bonuses, and extended health coverage. This move followed the earlier spin-out of its Cora air taxi project into a joint venture with Boeing, leaving Heaviside as Kitty Hawk's primary mission in the advanced air mobility industry.

Electric vehicle startup Rivian laid off approximately 40 employees, or about 2% of its then 2,000-person workforce, in early June 2020. The cuts occurred at its engineering and design center in Plymouth, Michigan, affecting various departments including engineering and recruiting. While the company stated the layoffs were performance-based to streamline operations, some former employees believed they were linked to the economic pressures of the COVID-19 pandemic. Concurrently, Rivian announced new executive hires, including a replacement chief operating officer, as it continued its growth trajectory supported by major investments from backers like Amazon and Ford.

In June 2020, Bird, a micromobility company, laid off approximately 100 employees from Circ, the European scooter-sharing startup it had acquired just months earlier. This represented a significant portion of Circ's workforce, as the layoffs coincided with Bird shutting down Circ's entire Middle East operations in Bahrain, the UAE, and Qatar. The company cited extreme summer heat as the reason for a temporary "pause," but the move was part of a broader industry pullback during the COVID-19 pandemic to cut costs. Concurrently, Bird scrapped between 8,000 and 10,000 Circ scooters, stating they were worn out and failed to meet safety standards, despite receiving purchase offers from other mobility firms.

Descartes Labs laid off 12 employees representing approximately 16% of its workforce on 2020-06-02.

Fundbox laid off 14 employees representing approximately 15% of its workforce on 2020-06-02.

Stitch Fix, an online personal styling service, announced in June 2020 that it would lay off 1,400 stylists based in California, representing about 18% of its then 8,000-person workforce. The layoffs, set to occur through September, were part of a strategic shift to relocate styling roles to lower-cost U.S. hubs like Dallas, Austin, and Minneapolis, where the company planned to hire 2,000 new stylists starting that summer. This restructuring, driven by cost-saving measures and operational adjustments amid the COVID-19 pandemic's uncertainty, offered affected California employees the option to relocate with support, including severance and extended benefits for those who chose not to move.

In June 2020, the online travel aggregator MakeMyTrip announced it would lay off approximately 350 employees, representing about 10% of its workforce. The decision was driven by a severe downturn in the travel and tourism industry due to the COVID-19 pandemic, which caused global travel restrictions and a sharp decline in revenues. CEO Deep Kalra explained that the company needed to adjust its business strategies as a recovery in travel demand was not expected soon. The layoffs primarily affected non-tech roles at the group level, including within its Goibibo unit. MakeMyTrip, a major player in India's online travel sector, also noted it had previously implemented salary furloughs and provided affected employees with benefits like extended medical coverage and outplacement support.

CrowdStreet laid off 24 employees representing approximately 22% of its workforce on 2020-06-01.

Brex, a San Francisco-based fintech company that provides credit cards to startups, laid off 62 employees, representing 15% of its workforce, on Friday. The layoffs were part of a company restructuring aimed at prioritizing product development over expansion in response to economic challenges from the coronavirus pandemic. With its customer base largely consisting of other startups, Brex has been impacted as these companies reduce spending or cease operations, decreasing revenue from credit card interchange fees. The company is offering affected employees eight weeks of severance pay, health insurance through the end of 2020, waived equity cliffs, extended stock option exercise periods, and the ability to keep their company-issued computers.

Microsoft laid off journalists to replace them with AI, as part of a move towards automation in its operations.

Loftium, a Seattle-based startup in the short-term rental and property management industry, laid off more than half of its employees in 2020 as the COVID-19 pandemic devastated travel and Airbnb demand. The company, which had secured $15 million in venture capital and was rapidly expanding, operated in 11 cities with around 700 rental units. Founded in 2017, Loftium's business model relied on renting homes from landlords, subleasing part of the space to long-term tenants at a discount, and managing Airbnb listings in the remaining areas. With travel halted, the company faced severe financial strain, leading to widespread layoffs, withheld lease payments to landlords, and a reduction in its Airbnb listings. This crisis forced Loftium to attempt renegotiating lease terms with tenants to stay afloat.

TrueCar laid off 219 employees representing approximately 30% of its workforce on 2020-05-28.

In March 2020, StubHub, an online ticket marketplace, furloughed 450 employees, representing two-thirds of its North American workforce, as the COVID-19 pandemic began. By that summer, with live events like concerts and sports games remaining largely shut down due to high transmission risks, the company permanently laid off 200 of those furloughed employees. This significant reduction was a direct result of the severe and prolonged impact of the pandemic on the live events industry, which devastated demand for ticket resale services. The layoffs occurred just months after StubHub's $4 billion acquisition by Viagogo, a deal famously criticized for its terrible timing given the ensuing global crisis.

Culture Amp, an Australian employee engagement survey startup valued at $1.04 billion, has laid off 36 employees, representing 8% of its global workforce of 446. The company, which serves around 3,000 customers worldwide, cited the economic impact of the coronavirus pandemic, which halved its growth rate. CEO Didier Elzinga explained that despite holding off initially, the prolonged downturn necessitated adjusting the company's size to ensure sustainability. While not directly eligible for government support due to a limited revenue drop in Australia, Culture Amp faced significant challenges in international markets. The layoffs reflect a broader industry trend as tech companies navigate a slow recovery, though the firm remains optimistic about the long-term importance of its culture-focused services.

In May 2020, BookMyShow laid off or furloughed 270 employees, impacting 18% of its global workforce of 1,450. The online ticketing platform, operating in the entertainment and events industry, took this difficult step due to the severe and prolonged impact of the COVID-19 pandemic on out-of-home entertainment. In a company-wide email, CEO Ashish Hemrajani cited the need to adjust the business for an uncertain future. While the exact split between layoffs and furloughs was not specified, affected employees received support packages, and remaining leadership teams took voluntary pay cuts to help navigate the crisis.

The Sill laid off 20 employees representing approximately 25% of its workforce on 2020-05-28.

Instructure laid off 150 employees representing approximately 12% of its workforce on 2020-05-27.

Ebanx laid off 62 employees representing approximately 8% of its workforce on 2020-05-27.

In May 2020, fintech company Acorns laid off between 50 to 70 employees, primarily from its internal support team, as part of broader business changes. This represented a small percentage of its workforce, though the exact total employee count wasn't specified. The layoffs coincided with the closure of its Portland office and a shift to outsourcing customer support to TaskUs, which will add about 80 external roles. Despite this restructuring, Acorns was experiencing significant growth, having reached 7 million sign-ups amid increased interest in investing during the coronavirus pandemic. The company, based in Irvine, California, also faced challenges with its new debit card product due to reduced consumer spending.

Uber laid off 600 employees representing approximately 23% of its workforce on 2020-05-26.

Bluprint, a Denver-based online learning startup in the lifestyle and crafts industry formerly known as Craftsy, is permanently shutting down. The company, which was acquired by NBCUniversal in 2017, will lay off all 137 employees in July and August 2024. According to founder and CEO John Levisay, the closure is a decision made by parent company NBCUniversal, though specific reasons were not detailed. Bluprint offered subscription-based how-to videos and e-commerce for crafts, but will now cease operations entirely.

In May 2020, the online automobile marketplace CarDekho laid off over 200 employees, a move that impacted its workforce of approximately 5,000, including third-party staff. This reduction, representing a significant portion of its personnel, was driven by severe challenges in the automobile sector, which faced a sharp downturn with no business for two months and uncertain prospects for the following six to eight months. Concurrently, the company implemented pay cuts across various salary brackets, ranging from 12% to 45%, with senior management absorbing the highest reductions. As a unicorn startup valued around $643 million and backed by investors like Sequoia Capital, CarDekho's actions reflect the broader industry strain during the COVID-19 pandemic, affecting other players in the used-car digital marketplace as well.

Teamwork, a Cork-based project management software company and one of Ireland's fastest-growing indigenous tech businesses, has decided to postpone its plans to raise tens of millions in venture capital. Co-founder Peter Coppinger cited weakening tech valuations due to the unprecedented Covid-19 crisis as the reason, stating the company will hold off on fundraising for now. The company, which bootstrapped its way to around $30 million in revenue last year, is adjusting its strategy amid the global economic uncertainty, though specific layoff numbers or percentages were not disclosed in the available content.

Glitch, a coding platform and tech startup, laid off a substantial number of employees on May 22, 2020, to cut operating costs and ensure long-term viability. According to sources, at least 18 people were let go from a workforce of about 50, representing around a third of its staff. CEO Anil Dash cited the challenges of being a small company in a fiercely competitive space during a tough economy. The layoffs followed the recent launch of a subscription service, which had a slow start, as the company sought to stabilize its finances amid the pandemic's market conditions.

Cvent laid off 400 employees representing approximately 10% of its workforce on 2020-05-21.

Paris-based ride-hailing company Kapten, owned by Free Now Group, has laid off at least 68 employees, primarily from its Engineering and Product teams, as part of a broader restructuring. The layoffs, which occurred around May, stem from the company's decision to halt additional investments in its Paris Tech hub. While initial estimates suggested between 130 to 180 employees could be affected, the confirmed number so far is 68. The process unfolded over several months due to local labor law regulations, reflecting challenges in the competitive ride-hailing industry.

In May 2020, Chennai-based online travel startup PickYourTrail announced a strategic business realignment in response to the COVID-19 pandemic's severe impact on international travel. While the article does not specify exact layoff numbers, the context implies workforce adjustments as the company pivoted to survive. Historically focused solely on curated international vacation experiences since its 2014 founding, the startup shifted to enter the competitive domestic travel market, targeting a mid-June launch to align with India's resumption of domestic flights. This move, driven by necessity to ensure survival amid stalled global tourism, involved reorienting its business model and supply chains to cater to local travelers seeking closer-to-home experiences, marking a significant operational change for the small to mid-scale travel tech company.

ShareChat, a Bengaluru-based regional social media startup backed by Twitter, laid off 101 employees on May 20, 2020, representing about 25% of its workforce. The company cited an unpredictable advertising market severely impacted by the COVID-19 pandemic as the primary reason. Having only begun monetizing through ads in October 2019, ShareChat stated it needed to refocus on its core product and fundamental growth levers to sustain the business. The affected employees were offered support, including a "garden leave" option and professional resume-building assistance.

In May, Intercom, a San Francisco-based customer messaging software company, laid off 39 employees, representing 6% of its workforce. The company cited restructuring efforts as it also relocated 47 roles in marketing and R&D from San Francisco to Dublin. Affecting multiple departments, including engineering, this move reflects broader adjustments within the tech industry. Intercom has since launched a Talent Directory to assist the impacted employees in finding new opportunities.

In May 2020, Indian ride-hailing firm Ola laid off 1,400 employees, representing 35% of its workforce in India, as the company grappled with the severe impact of the COVID-19 pandemic. The layoffs, announced by CEO Bhavish Aggarwal, were a response to a dramatic 95% drop in revenue over two months following a nationwide lockdown that halted mobility services. The job cuts were confined to the mobility and food operations teams within India, while Ola Electric remained unaffected. Aggarwal cited the prolonged and uncertain crisis, noting that the shift in consumer behavior, including increased remote work and reduced travel, would have a long-term impact on the business. Affected employees received three months of salary and extended benefits.

Stay Alfred laid off 221 employees representing approximately 100% of its workforce on 2020-05-20.

Personal finance fintech SoFi has laid off approximately 112 employees, representing about 7% of its 1,600-person workforce. The cuts followed a more rigorous round of quarterly performance reviews, influenced by current market conditions, and also included the elimination of a collections team due to automation. This restructuring occurs just over a month after SoFi announced a major $1.2 billion acquisition of payments startup Galileo. The layoffs were not confined to specific teams but occurred across the organization, reflecting efforts to address inefficiencies amid broader strategic moves in the fintech industry.

Samsara, a San Francisco-based company specializing in internet-connected sensors for industrial operations, laid off 300 employees yesterday, representing 18% of its workforce across all departments. The layoffs are attributed to the economic downturn, with the company also raising $400 million at a reduced valuation of $5.4 billion, down from $6.3 billion in September. To further cut costs, Samsara is reducing executive salaries by 30% for the remainder of the year, limiting non-essential spending, and implementing a six-month hiring freeze. In a supportive move, the company has established a talent directory to assist affected employees in finding new opportunities.

Livspace, a home interior and renovation platform, laid off approximately 100 employees, which represents about 2% of its workforce. The decision, made in early 2024, is part of a restructuring effort to improve profitability and operational efficiency amid a broader market correction in the tech and startup sector. Operating in the proptech and home services industry, the company aims to streamline its operations to achieve sustainable growth.

Dotscience, a London-based startup that developed DevOps tools for machine learning, has shut down entirely this week after running out of funds and failing to secure additional financing. The closure resulted in all 10+ employees being laid off, representing 100% of its workforce, including seven engineers. Operating in the AI/ML infrastructure industry as a small-scale startup, the company ceased operations in late 2023, highlighting the challenging funding environment for early-stage tech firms.

In May 2020, the U.K.-based experience marketplace Pollen laid off 69 employees across North America, representing approximately 31% of its then 216-person workforce. An additional 34 staff in the U.K. were placed on furlough. The layoffs were a direct result of the severe impact the COVID-19 pandemic had on the travel and events industry, which forced countries into lockdown and triggered a recession. Despite having raised $60 million in funding just months prior in October 2019, the startup was forced to make significant cuts to its operations.

WeWork India, the Indian subsidiary of the US-headquartered co-working giant, laid off approximately 20% of its workforce in May 2020, affecting around 100 employees out of a total of 500. This decision was driven by the severe impact of the COVID-19 pandemic on business and revenues, which exacerbated existing financial stress. CEO Karan Virwani stated the layoffs were a tough but necessary step to streamline operations, reduce costs, and build a sustainable structure focused on core business priorities. The company, operating 34 centers in India, aimed to become profitable by early 2021 by realigning teams and adopting a more member-centric approach amid the global crisis.

Intapp, a technology provider serving the legal industry, has laid off over 45 employees, representing approximately 5% of its workforce, in response to market challenges exacerbated by the Covid-19 pandemic. The layoffs, confirmed by company leadership, affected staff across multiple U.S. and London offices as the legal sector faces significant economic pressures. This cost-cutting move follows a period of acquisition activity by Intapp in 2018-2019, highlighting the shifting dynamics within the legal tech industry during the outbreak.