Here’s a recap of the startup layoffs from this past week. If you’ve seen a layoff spreadsheet for any of these companies, please let us know!
See the Layoffs.fyi Tracker for a comprehensive list of all startup layoffs since COVID-19.
🏢 Stitch Fix ∙ 🌎 SF Bay Area ∙ 👩 1,400 employees (18%) ∙ 🔗Source
- An online personal styling service, Stitch Fix said it will lay off 1,400 stylist employees in California between now and the end of September. It plans to replace these employees by hiring 2,000 stylists in lower-cost cities over the coming year. Laid-off employees will have the opportunity to relocate; those who don’t will receive 2 weeks or more of severance, extended healthcare, and a bonus for staying through the transition period.
🏢 TrueCar ∙ 🌎 Los Angeles ∙ 👩 219 employees (30%) ∙ 🔗Source
- An automotive pricing website, TrueCar says the cuts come in anticipation of the termination of its revenue-sharing partnership with USAA. The timing and scope of the layoff was further accelerated by COVID-19. Laid-off employees will receive 13 weeks of base pay plus 1 week for each additional year of service beyond the first, along with healthcare coverage through 2020.
🏢 Monzo ∙ 🌎 London ∙ 👩 120 employees (8%) ∙ 🔗Source
- A London-based digital bank, Monzo is laying off 120 of its U.K. employees. This comes on top of the 165 employees it laid off when it shut down its Las Vegas customer support office in April. The company also previously furloughed 295 U.K. employees. As consumers pull back on spending, Monzo generates less revenue from the interchange fees on its debit card products.
🏢 Kitty Hawk ∙ 🌎 SF Bay Area ∙ 👩 “Most of” a 70-person team ∙ 🔗Source
- Backed by Google co-founder Larry Page, Kitty Hawk is shutting down its electric flying car initiative and laying off most of that team’s 70 employees. However, the company is still working on a different autonomous electric aircraft initiative. Laid-off employees will receive at least 20 weeks of severance based on tenure, along with health insurance coverage through the end of the year.
🏢 Acorns ∙ 🌎 Portland∙ 👩 55 employees ∙ 🔗Source
- Last week, Portland Business Journals reported that Acorns was shutting down its Portland office. A source tells Layoffs.fyi that over 55 employees were laid off as well, and that the support team was offshored. According to the source, Acorns closed both its Portland and Delaware offices and laid off most of its staff in New York.
🏢 Rivian ∙ 🌎 Detroit ∙ 👩 40 employees (2%) ∙ 🔗Source
- An electric vehicle company, Rivian confirmed it laid off 40 employees in its Plymouth, Michigan office. One laid-off employee tells Layoffs.fyi that the actual number may be higher. In another example of differing accounts, The Verge reported that “former employees say they believe the cuts were related to the stresses of the COVID-19 pandemic, though Rivian says they were performance-based.”
🏢 SpotHero ∙ 🌎 Chicago ∙ 👩 40 employees (21%)∙ 🔗Source
- An app that helps people find parking spots, SpotHero has now reduced its staff by 70 employees across two rounds of layoffs since March. Parking solutions are in less demand now that people are staying at home.
🏢 Fundbox ∙ 🌎 SF Bay Area ∙ 👩 14 employees (15%) ∙ 🔗Source
- A small business lending company, Fundbox announced a $20 million extension to its $326 million Series C in conjunction with the layoff. The company is also cutting management salaries by an unspecified amount. Fundbox says the COVID-19 crisis has harmed small and medium-sized businesses, which form the core of the company’s customer base.
🏢 MakerBot ∙ 🌎 New York City ∙ 👩 12 employees
- A creator of 3D printers, MakerBot laid off a dozen employees amid declining revenues caused by school closures, according to an internal memo viewed by Layoffs.fyi. MakerBot’s layoff was part of a broader staffing cut by parent company Stratasys, which is laying off 240 employees in total.
