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 ∙ 🌎 Seattle ∙ 👩 22 employees (49%) ∙ 🔗Source
- 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.
🏢 Curefit ∙ 🌎 Bengaluru ∙ 👩 120 employees ∙ 🔗Source
- 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.
This week saw huge layoffs from Uber, Airbnb, and Juul. These 3 layoffs rank among the top 10 biggest in tech since the coronavirus was declared a pandemic.
Below are a few of the startup layoffs from this past week. Check out our tracker for a more comprehensive list. If you’ve seen a layoff spreadsheet for any of these companies, please let us know!
🏢 Uber ∙ 🌎 SF Bay Area ∙ 👩3,700 employees (14%) ∙ 🔗Source
- Ridesharing service Uber laid off 3,700 employees from its customer support and recruiting teams. The CEO’s letter to staff strongly hints that more cuts are coming in the next two weeks, including in engineering and product. As many as 5,400 employees are expected to ultimately be laid off.
🏢 Juul ∙ 🌎 SF Bay Area ∙ 👩900 employees (30%) ∙ 🔗Source
- A maker of e-cigarettes, Juul has been mired in controversy over its role in the rise of underage vaping. Its layoff is unrelated to the coronavirus. Juul is also planning to move its headquarters from San Francisco to Washington D.C., partially because its products are now banned in SF.
🏢 CureFit ∙ 🌎 Bengaluru ∙ 👩 800 employees (16%) ∙ 🔗Source
- An India-based fitness startup, CureFit also permanently closed a number of its gyms. The coronavirus lockdown has crushed fitness companies, including U.S.-based ClassPass (53% of team laid off or furloughed) and Brazil-based Gympass (467 employees laid off).
🏢 Careem ∙ 🌎 Dubai ∙ 👩 536 employees (31%) ∙ 🔗Source
- A ridesharing service acquired by Uber last year, Careem was one of the Middle East’s biggest startups. However, its business has dropped 80% post-coronavirus. Laid-off employees will receive at least 3 months of severance, 1 month of equity vesting, and extended visa and health insurance through 2020.
🏢 Namely ∙ 🌎 New York City ∙ 👩 160 employees (40%) ∙ 🔗Source
- A maker of HR and payroll software, Namely noted that its SMB customers have been downsizing as a result of the pandemic. This has led to lower revenue for Namely, which makes money in part via a per-employee monthly fee.
🏢 Kayak / OpenTable ∙ 🌎 Stamford ∙ 👩 160 employees (8%) ∙ 🔗Source
- Kayak and OpenTable, both subsidiaries of Booking Holdings Inc., laid off 160 employees and furloughed another 240 employees. The company’s revenue has “dropped tremendously from the COVID-19 crisis.”
🏢 Oyo ∙ 🌎 London ∙ 👩 150 employees ∙ 🔗Source
- The self-proclaimed “world’s fastest growing hotel chain,” India-based Oyo plans to lay off 150-200 of its 300 employees in the UK. Oyo has already let go or furloughed thousands of employees globally in recent months. Its occupancy rate and revenue have dropped by over 50-60% since earlier this year.
🏢 Andela ∙ 🌎 New York City ∙ 👩 135 employees (10%) ∙ 🔗Source
- An Africa-focused startup that provides “engineering as a service,” Andela expects a decline in customers due to the economic downturn. The company is also shifting its strategy from acting as a talent accelerator to serving as a talent outsourcing firm. No engineers were part of the layoff.
🏢 Care.com ∙ 🌎Boston ∙ 👩 81 employees ∙ 🔗Source
- An online marketplace of caregivers, Care.com said its layoff was not related to the coronavirus. Rather, the cuts are the result of Care.com’s acquisition by IAC in February.
🏢 Stack Overflow ∙ 🌎 New York City ∙ 👩 40 employees (15%) ∙ 🔗Source
- A popular Q&A site for engineers, Stack Overflow has been hardest hit in its Talent business, which helps companies recruit and hire developers. Most of the affected employees were furloughed, though some were permanently laid off.
🏢 TheSkimm ∙ 🌎 New York City ∙ 👩 26 employees (20%) ∙ 🔗Source
- A media startup targeted towards millennial women, TheSkimm is offering laid-off employees at least one month of severance and health insurance through July. Digital media companies have suffered declining revenue as brands pull back on advertising during the economic slowdown.
Last week we tracked 50 startup layoffs affecting over 4,000 people. The post-Coronavirus tally has now crossed 10,000 employees laid off ☹️.
Below are a few of the recent layoffs. Check our Layoffs Tracker for a comprehensive report. If you’ve seen a layoff spreadsheet for any of these companies, please let us know so we can help the affected people!
- MindBody, which creates scheduling software for gyms, fitness studios, and spas, laid off or furloughed 700 employees. Nearly 95% of their customers are closed due to shelter-at-home orders.
- 🌎 San Luis Obispo ∙ 👩💼 700 employees (35%) ∙ 🔗Source
- Sojern, an ad-tech startup servicing travel companies, cut 300 employees, about half its staff. Travel advertising in general fell by as much as 90% in March.
- 🌎 San Francisco ∙ 👩💼 300 employees (50%) ∙ 🔗Source
- AdRoll, an ad retargeting company, laid off 174 employees. According to an employee, the Salt Lake City and New York City offices were most affected.
- 🌎 Salt Lake City ∙ 👩💼 174 employees
- Velodyne Lidar, which designs sensor systems used in driverless cars for companies like Uber, laid off 140 employees. Workers say the company is using the coronavirus as an excuse when they’ve long been planning to transfer production overseas.
- 🌎 San Francisco ∙ 👩💼 140 employees ∙ 🔗Source
- ThirdLove, a startup that sells bras and underwear, laid off 30% of its team. Other direct-to-consumer companies like Everlane and Brandless were struggling even before COVID-19 due to rising customer acquisition costs.
- 🌎 San Francisco ∙ 👩💼 94 employees (35%) ∙ 🔗Source
- Industrious, a provider of flexible office space, laid off 20% of its staff (90 employees) and enacted furloughs or reduced hours for another 10%. The company joins a growing list of modern real estate companies that have conducted layoffs, including WeWork, Sonder, and Knotel.
- 🌎 New York City ∙ 👩💼 90 employees (20%) ∙ 🔗Source
- Arrive Logistics, a freight brokerage, cut 75 employees (7%) and furloughed another 35. It cited the coronavirus outbreak’s negative impact on freight markets.
- 🌎 Austin ∙ 👩💼 75 employees (7%) ∙ 🔗Source
- Bustle Digital Group, a media company that owns Bustle, Elite Daily, and Mic, laid off 24 employees. The entire staff of The Outline, a culture site, was let go as part of the layoff.
- 🌎 New York City ∙ 👩💼 24 employees ∙ 🔗Source
- The Wing, a co-working space for women, laid off half of its headquarters staff. It said it saw 95% of its revenue “disappear overnight.”
- 🌎 New York City ∙ 👩💼 50% of employees ∙ 🔗Source
🌎 New York City ∙ 👩💼154 employees (22%) ∙ 🖥 All departments
ClassPass, a membership program for fitness classes, laid off 22% of employees and furloughed 31% more. Two crowdsourced spreadsheets of affected employees are actively being compiled (links below👇). The company has seen 95% of its revenue disappear now that most fitness studios and gyms are closed.
See our live Layoffs Tracker for a real-time report of all startups that have done layoffs.