🌎 London ∙ 👩 At least 4 employees ∙ 🖥 Multiple departments
Perkbox, which makes HR software designed to improve the employee experience, conducted a layoff last week. In a LinkedIn post announcing the layoff, the company launched a talent directory showcasing some of its former employees (see link 👇).
The Perkbox layoff list features 4 ex-employees based in London.
Although permanent layoffs have been the most common way to shrink staff during the pandemic, dozens of startups instituted furloughs to try to avoid a bigger layoff. Furloughed employees were kept on health insurance and told that their employment status would be revisited in a few months.
Now that the furlough period is ending for some of these employees, we’re starting to see what tech companies decide to do. In a positive sign, Yelp said last week that it would bring back “nearly all” of the 1,100 employees it furloughed in April.
Other employees aren’t so lucky. Vox Media will reportedly lay off most of their furloughed employees, with additional job cuts coming on top. Hospitality startup Oyo laid off the “large majority” of its furloughed U.S. employees.
The Layoffs.fyi Tracker doesn’t count furloughs, but will be tracking which companies end up laying off their furloughed employees.
Below is a recap of the layoffs from this past week.
🏢 LinkedIn ∙ 🌎 SF Bay Area ∙ 👩 960 employees (6%) ∙ 🔗Source
Professional networking site LinkedIn laid off 960 employees (6%) across its Global Sales and Talent Acquisition teams. The company said its Talent Solutions business has been hurt due to a slowdown in hiring during the pandemic. Talent Solutions sells sourcing tools and job listings to help companies hire.
Lighter Capital, which provides revenue-based financing to startups, laid off 22 employees (49%). The company previously cut 22% in April. Lighter Capital’s loans are repaid from a startup’s future revenue. But with startups facing lower revenue projections in light to the pandemic, it’s likely that Lighter Capital’s lending model is under pressure.
An India-based fitness startup, CureFit’s job cut affected 600 employees, 70-80% of whom were furloughed. The company previously laid off 800 employees in May. Fitness centers are part of India’s shutdown orders, and CureFit has had to permanently close a number of its gyms.
🌎 Paris ∙ 👩 At least 68 employees ∙ 🖥 Engineering and Product
A Paris-based ride-hailing company owned by Free Now Group, Kapten set up a Talent Directory to promote its departed alumni (see link 👇). In a LinkedIn post promoting the directory, Free Now’s CTO said that the company decided to “stop additional investments into [its] Paris Tech hub.”
Back in May, multiple sources told Layoffs.fyi that Kapten was conducting a layoff, with estimates ranging from 130 to 180 employees affected. Due to local labor law regulations, the process was expected to take several months to complete.
The Kapten layoff list features 68 ex-employees, primarily in Engineering and Product.
To help its laid-off employees find new roles, Monzo created a talent directory (see link 👇) . It’s not clear whether the directory is meant to cover the company’s previous layoffs, or if there’s been a new round in July. In a LinkedIn post, an employee on Monzo’s talent team alludes to “saying goodbye to some incredibly valued colleagues at Monzo right now.”
As consumers pull back on spending, Monzo generates less revenue from the interchange fees on its debit card products. The company recently raised £60 million at a 40% lower valuation to its prior round last year.
The Monzo layoff list features 24 ex-employees, many of whom are engineers and designers.
Below is a recap of the layoffs from this past week. Check out the Layoffs.fyi Tracker for a complete list of all tech layoffs during the pandemic.
In case you missed it — we recently looked at usage data from the Layoffs.fyi List to see what types of laid-off employees were getting the most attention from recruiters. Among the findings: there are 4x as many searches for laid-off engineers as there are for the next most popular function (design). You can read the full analysis here.
🏢 OnDeck ∙ 🌎 New York City ∙ 👩 20% of employees ∙ 🔗Source
Small business lending company OnDeck laid off 20% of its staff, two sources told Layoffs.fyi. Finance blog deBanked attempted to email OnDeck’s head of corporate communications for comment, but received an auto-reply saying that he was no longer with the company.
Local reviews site Yelp plans to bring back “nearly all” of the 1,100 employees it furloughed in April, citing “cautious optimism” about the economic recovery. However, 63 employees will be laid off as a result of Yelp’s decision to keep its offices closed into next year.
🏢 Optimizely ∙ 🌎 SF Bay Area ∙ 👩 60 employees (15%) ∙ 🔗Source
A maker of A/B testing software, Optimizely laid off 60 employees (15%). Laid-off employees will receive severance pay and six months of COBRA (through 2020), and will be allowed to keep their laptop.
🏢 Vox Media ∙ 🌎 Washington D.C. ∙ 👩 Unknown # employees ∙ 🔗Source
Vox Media, the owner of New York Magazine, The Verge, SBNation and Eater, previously furloughed 100 employees in April. Vox is planning to permanently lay off many of those employees, and may cut additional jobs as well. The company plans to miss its 2020 forecast by 25%, due in part to the pandemic’s impact on its coverage areas of sports and real estate.
A flight comparison website based in Scotland, Skyscanner plans to close or scale back many of its global offices outside the U.K. The company’s revenues “have been hit significantly,” and it expects a full recovery to be “several quarters or possibly years away” due to the pandemic’s disruption on travel.
This blog post was written by Layoffs.fyi intern Stephan Billingslea, a Yale student majoring in economics and statistics.
At a time when hundreds of startups have laid off employees but many others are still hiring, we wanted to explore – what’s in demand for hiring in this current environment?
To find out, we analyzed usage data from theLayoffs.fyi List, which combines 80+ spreadsheets of laid-off tech employees into a single place that’s easy to filter, search, and sort.
Thousands of recruiters and hiring managers use the Layoffs.fyi List to find candidates for their open roles. How they use the site reveals some interesting takeaways about what tech employers are hiring for:
Engineering is the function in greatest demand – by a lot. There are 4x as many searches for laid-off engineers as there are for the next most popular function (Design).
The most popular locations for tech hiring are the San Francisco Bay Area and New York City.
The most searched-for job titles (laid-off Software Engineers, Product Managers, Data Scientists, and Product Designers) are all related to product development.
Recruiters and hiring managers primarily use six search filters to browse the 16,000+ laid-off employees on the Layoffs.fyi List.
Prior Department and Location are the filters used most often, based on the percentage of pageviews using each filter.
Engineering is by far the most sought-after function, accounting for over 35% of all pageviews using the Prior Department filter. There are 4x as many searches for laid-off engineers as there are for the next most popular function (Design).
Not surprisingly, demand for tech hiring is clustered around the major startup hubs. The San Francisco Bay Area dominates the domestic search with almost 30% of all pageviews with a Location filter, followed by New York City and Boston. Internationally, Toronto, London, and India are the most searched-for locations.
Software Engineers and Product Managers are the job titles with the highest hiring demand. In fact, the four most searched-for job titles (laid-off Software Engineers, Product Managers, Data Scientists, and Product Designers) are all related to product development.
Former Toast, Uber, and Airbnb employees are the most sought after on the site, suggesting that these companies have a strong reputation for attracting talented employees.
The world has changed drastically over the past few months, but one thing remains the same: tech companies still focus their outbound recruiting efforts on engineering.
There’s reason to believe that the coronavirus pandemic may have even amplified this trend. Our previous analysis showed that tech layoffs have affected sales and customer success roles the most, as startups face a new reality of slower customer growth. This may be allowing companies to focus more on product development initiatives instead, leading to sustained interest in hiring engineers.
🌎 San Francisco ∙ 👩 39 employees (6%) ∙ 🖥 Multiple departments
A maker of customer messaging software, Intercom laid off 39 employees in May. The company said it was also relocating 47 roles in its marketing and R&D teams from San Francisco to Dublin.
Yesterday the company began publicizing an Intercom Talent Directory to help affected employees find new opportunities (see link 👇). The Intercom layoff list features 25 ex-employees across multiple functions, including 7 engineers in San Francisco.
A global lodging company headquartered in India, Oyo permanently laid off a “large majority” of the U.S. employees it furloughed in April. A laid-off employee tells Layoffs.fyi that 90% of the U.S. team was affected, likely numbering hundreds of people. In an internal memo, Oyo’s COO said that its U.S. business is “showing positive signs of recovery.” However, U.S. revenue is still 25% below January’s levels, with global revenue only at ~30% of pre-COVID levels.
🏢 Funding Circle ∙ 🌎San Francisco ∙ 👩 85 employees ∙ 🔗Source
A London-based lending platform for small businesses, Funding Circle will lay off 85 U.S. employees to help its U.S. business move towards profitability. The company’s San Francisco technology development team will be consolidated to the U.K., and its sales and marketing operations will be moved to Denver.
🏢 The Wing ∙ 🌎 New York City ∙ 👩 56 employees ∙ 🔗Source
A co-working space for women, The Wing laid off an additional 56 employees after cutting half of its team in April. The company’s workspaces continue to be closed due to the pandemic, threatening its primary source of revenue. Laid-off employees will receive two months of severance pay along with extended healthcare benefits.
🏢 Hired ∙ 🌎 San Francisco ∙ 👩 Unknown # employees ∙ 🔗Source
A hiring marketplace that matches tech companies with job candidates, Hired is the latest recruiting startup to conduct a layoff during the pandemic. The number of employees laid off is unknown, though one Layoffs.fyi source says that at least 5 engineers and possibly up to 50 employees total were affected.
🏢 Kongregate ∙ 🌎 SF Bay Area ∙ 👩 12 employees ∙ 🔗Source
A video game publisher and web gaming portal, Kongregate laid off 12 employees as part of a strategy shift. The company will be focusing more on developing games internally rather than publishing Flash-based games made by others. Kongregate apologized that some employees found out about their layoff through a direct deposit notification.
An online interior design service, Havenly laid off 5 full-time workers and some temp workers in the spring. However, the company has begun hiring again in recent weeks, due to rising demand from people wanting to improve their living space during shelter-in-place.
🌎 Nairobi, Lagos, Kigali, Kampala, New York City ∙ 👩 135 employees ∙ 🖥 Multiple departments
An Africa-focused startup that provides “engineering as a service” to other companies, Andela laid off 135 employees in May. The company cited a decline in customers due to the economic downturn. Andela is also shifting its strategy from acting as a talent accelerator to serving as a talent outsourcing firm.
The Andela layoff list features 59 former engineers and 30 non-engineers (see link below 👇). Most are based in Africa, though a few are located in New York City.
The Paycheck Protection Program (PPP) was established by the government to incentivize small businesses to keep their workers employed during the pandemic. However, a Layoffs.fyi analysis reveals that over 100 tech startups conducted layoffs despite receiving loans through the program.
On Monday, the government released the names of all companies that received loans greater than $150,000. Among the tech startups on the list: Getaround (laid off 100 on 3/27, received $5-10 mm loan on 4/28), Metromile (laid off 100 on 4/6, received $5-10 mm loan on 4/7), Lever (laid off 86 on 4/8, received $2-5 mm loan on 4/27), and Mixpanel (received $5-10 mm loan on 4/13, laid off 65 on 5/12).
Some companies have disputed the list’s accuracy, claiming they never received a PPP loan. It’s also worth noting that most of these companies laid off employees before getting the loan.
PPP loans carry a 1% interest rate and a 2 or 5-year term, making them an extremely attractive financing option for startups. The loan can even be forgiven if the company uses at least 60% for payroll costs and doesn’t reduce headcount, among other requirements.
Here’s a list of startups that reportedly received a PPP loan and laid off employees during the pandemic (our Layoffs.fyi Tracker has a complete list of all tech layoffs).
Many venture-backed startups struggled to decide whether to apply for a PPP loan, fearing they’d be taking money that could’ve gone to needier small businesses. Those that received a loan and laid off employees may endure additional scrutiny since the loan didn’t accomplish its intended purpose.
At the same time, PPP loans may have prevented these startups from laying off even more staff or shutting down altogether. 72% of the companies listed above conducted their layoff before receiving the loan, suggesting that the money was used to avoid further business damage.
While companies must retain their employees to qualify for loan forgiveness, there’s no such requirement to take out a PPP loan in the first place. Businesses are also allowed to use the loans for expenses beyond payroll.
Thanks to Layoffs.fyi intern Stephan Billingsleafor helping with the research.