Almost 300 startups have now laid off nearly 30,000 employees since the coronavirus pandemic began.
Below are a few notable layoffs from this past week. You can check our tracker for a more comprehensive report. As always, if you’ve seen a layoff spreadsheet for any of these companies, please let us know!
🏢 Magic Leap ∙ 🌎 Miami ∙ 👩 1,000 employees (50%) ∙ 🔗Source
- One of the most prominent augmented reality startups, Magic Leap decided to abandon its consumer business and instead focus on enterprise use cases. Despite raising over $2 billion in funding, the company has found it challenging to release a mainstream product or generate meaningful revenue.
🏢 Lending Club ∙ 🌎 SF Bay Area ∙ 👩 460 employees (30%) ∙ 🔗Source
- An online lender, Lending Club said its layoff was the result of tightening credit markets and a drop in demand for personal loans, the company’s flagship product.
🏢 Houzz ∙ 🌎 SF Bay Area ∙ 👩 155 employees (10%) ∙ 🔗Source
- An online platform for home remodeling, Houzz said that social distancing measures has led to lower demand for its pro subscriptions, which connect home remodeling professionals with potential customers. Houzz is providing laid-off employees with severance packages based on tenure and 3 months of benefits.
🏢 CarGurus ∙ 🌎 Boston ∙ 👩 130 employees (13%) ∙ 🔗Source
- A marketplace for cars, CarGurus said that dealers have been forced to close due to stay-at-home orders, “effectively pausing vehicle sales.”
🏢 Greenhouse Software ∙ 🌎 New York City ∙ 👩 120 employees (28%) ∙ 🔗Source
- A maker of applicant tracking software, Greenhouse is the latest recruiting startup to conduct a layoff. Competitor Lever laid off 86 employees (40%) a week before. Greenhouse is offering laid-off employees 8 weeks of severance and 8 months of healthcare.
🏢 ConsenSys ∙ 🌎 New York City ∙ 👩 91 employees (14%) ∙ 🔗Source
- An incubator of Ethereum projects, ConsenSys cited the coronavirus pandemic as the cause of its layoff. However, the company did not elaborate on exactly how the pandemic has affected its business.
🏢 Casper ∙ 🌎 New York City ∙ 👩 78 employees (21%) ∙ 🔗Source
- A direct-to-consumer mattress startup, Casper also decided to close its European operations. The company hopes the job cuts will help it achieve profitability by mid-2021. One laid-off employee said, “though I am unsure what tomorrow holds, I do know that before tomorrow must come a good night’s sleep.”
🏢 Freshbooks ∙ 🌎 Toronto ∙ 👩 38 employees (9%) ∙ 🔗Source
- An accounting software company, Freshbooks said its small business customers have been affected by the economic fallout caused by the coronavirus. Freshbooks was planning to raise additional capital before COVID-19, suggesting that one motivation for the layoff was to extend the company’s cash runway.
🏢 Sweetgreen ∙ 🌎 Los Angeles ∙ 👩 35 employees (10%) ∙ 🔗Source
- A fast casual salad chain, Sweetgreen’s business has plummeted because of shelter-in-place. An employee said that app order volume has fallen by 2/3. Sweetgreen raised $150 million in funding last year, becoming possibly the only salad restaurant ever to raise venture capital.
🏢 Patreon ∙ 🌎 SF Bay Area ∙ 👩 30 employees (13%) ∙ 🔗Source
- Patreon, which enables artists and creators to accept money from their fans, said that the layoff was caused by “several other factors beyond the financial ones.” It cited a recent performance review cycle and a new company strategy, in addition to the current economic uncertainty.
🏢 People.ai ∙ 🌎 SF Bay Area ∙ 👩 30 employees (18%) ∙ 🔗Source
- A maker of predictive sales software, People.ai denied that the coronavirus pandemic has had any negative effect on its business. It said the layoff was simply to protect against future uncertainty. As would be expected of a sales startup, People.ai also listed multiple examples of how the company is in an extremely strong position.
🏢 Lambda School ∙ 🌎 SF Bay Area ∙ 👩 19 employees ∙ 🔗Source
- A training program for aspiring software engineers, Lambda School said the layoff was meant to reflect a shift in priority away from growth and towards student experience. The startup has recently received criticism for the quality of its program and for engaging in misleading marketing.
🌎 San Francisco Bay Area ∙ 👩 13 employees ∙ 🖥 All departments
Trove Recommerce, which helps retail brands manage their resale programs, laid off 13 employees last week, according to a company executive. The company provided us an opt-in spreadsheet of employees laid off. See below link👇if you’re recruiting in the Bay Area.
Source: Google Sheets
See our live Layoffs Tracker for a real-time report of all startups that have done layoffs.
Layoffs continue to ripple through the startup ecosystem. Notable events from the past 2 days include a 35% layoff from Opendoor and a 30% layoff from VSCO.
Below are a few other recent layoffs. Check our 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!
- The RealReal, an online marketplace for consigned luxury goods, laid off 10% of its employees and furloughed another 15%. Retailers and e-commerce companies have been among the hardest hit by the coronavirus pandemic, due to stay-at-home orders and a pullback in consumer discretionary spending.
- 🌎 SF Bay Area ∙ 👩 235 employees (10%) ∙ 🔗Source
- GoPro, which makes action cameras, said it will cut over 200 employees. With fewer opportunities to sell through retail stores, the company will shift its focus to selling directly online.
- 🌎 SF Bay Area ∙ 👩 200 employees (20%) ∙ 🔗Source
- Zume, which uses robots to make pizza while it’s being delivered, laid off 2/3 of its team. The CEO decided against using similarly-named Zoom to announce the layoff, choosing instead to send out a company-wide email.
- 🌎 SF Bay Area ∙ 👩 200 employees (67%) ∙ 🔗Source
- Carta, which makes software that helps companies manage the equity they’ve issued to investors and employees, laid off 161 people (16%). It believes a slower economy will lead to fewer customers than originally projected. Carta is providing affected employees 3 months of pay and healthcare insurance until the end of the year.
- 🌎 SF Bay Area ∙ 👩 161 employees (16%) ∙ 🔗Source
- TouchBistro, a point-of-sale system for restaurants, laid off 131 employees (23%). Most of its restaurant customers have closed due to shelter-in-place.
- 🌎 Toronto ∙ 👩 131 employees (23%) ∙ 🔗Source
- Neon, a Brazil-based digital bank, laid off 70 employees (10%). Other Brazilian fintech startups like C6 Bank and Creditas have also recently conducted layoffs.
- 🌎 Sao Paulo ∙ 👩 70 employees (10%)∙ 🔗Source
- Envoy, which makes a front desk visitor sign-in system, laid off 30% of its staff (58 employees). Its business has been affected by office closures across the country.
- 🌎 SF Bay Area ∙ 👩 58 employees (30%) ∙ 🔗Source
The Layoffs.fyi Tracker has now confirmed 230 startups w/ layoffs and 22,000 employees laid off since the coronavirus was declared a pandemic.
Below are a few of the recent layoffs. Check our 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!
- Groupon, a marketplace for discounts from local businesses, said it expects to lay off or furlough 44% of its team (2,800 employees). Previous reports suggested that only the sales and sales operations teams were affected, but the company’s announcement confirms a significantly deeper cut. Groupon has seen a “material deterioration” in its business due to the closure of local businesses it works with.
- 🌎 Chicago ∙ 👩 2,800 employees (44%) ∙ 🔗Source
- Meow Wolf, an art collective that creates interactive experiences, laid off 201 employees. Its art installations and live events have been cancelled due to shelter-in-place.
- 🌎 Santa Fe ∙ 👩 201 employees ∙ 🔗Source
- Monzo, an online bank, closed its Las Vegas office and laid off all 165 customer support employees there. The decision was in the works prior to the coronavirus pandemic.
- 🌎 Las Vegas ∙ 👩 165 employees ∙ 🔗Source
- OneTrust, which makes software that helps companies comply with privacy regulations, laid off 10-15% of its 1,500 employees. The company raised funding at a $2.7 billion valuation just two months ago.
- 🌎 Atlanta ∙ 👩 150 employees (10%) ∙ 🔗Source
- Omie, a Brazilian startup that sells business management software to small businesses, laid off 136 employees (15%).
- 🌎 Sao Paulo ∙ 👩 136 employees (15%) ∙ 🔗Source
- Zoox, a maker of self-driving taxis, is laying off 100 employees (10%). The news comes just one week after it laid off all 120 of its contract workers, including its backup drivers. Shelter-at-home orders have affected Zoox’s ability to continue testing its self-driving vehicles.
- 🌎 San Francisco∙ 👩 100 employees (10%) ∙ 🔗Source
- Domo, which creates business intelligence software to help executives manage their business, cut roughly 10% of its staff (about 90 people). The layoff was needed to ensure the company wouldn’t run out of money.
- 🌎 Salt Lake City ∙ 👩 90 employees (10%) ∙ 🔗Source
- Clinc, which uses AI to create virtual assistants, laid off 32% of its staff (40 employees). In February, the company’s CEO resigned after employee complaints of inappropriate behavior.
- 🌎 Ann Arbor ∙ 👩 40 employees (32%)∙ 🔗Source
- Mejuri, a startup that sells fine jewelry, laid off 15% of its team. Its retail stores have been closed since late March due to the ban on non-essential businesses.
- 🌎 Toronto ∙ 👩 36 employees (15%) ∙ 🔗Source
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
Since Thursday, unicorn startups ZipRecruiter, WeWork, Knotel, Getaround, and OneWeb have each laid off hundreds of employees, and over 20 startups in total have cut jobs.
Below are a few of the recent layoffs. Check out our Layoffs Tracker for a comprehensive, real-time report. If you’ve seen a layoff spreadsheet for any of these companies, please let us know!
- ZipRecruiter, the online hiring marketplace, laid off over 400 employees (39%). The company has seen its customers drastically slow down hiring and expects to miss revenue projections.
- 🌎 Santa Monica ∙ 👩💼 400 employees (39%) ∙ 🔗WSJ
- WeWork, the co-working company, laid off 250 employees. This follows a previous round of layoffs in November, but is supposedly unrelated to the coronavirus pandemic.
- 🌎 New York City ∙ 👩💼 250 employees ∙ 🔗Reuters
- Everlane, an e-commerce site for luxury clothing, laid off or furloughed 200 workers, primarily in their retail and backend operations functions.
- 🌎 San Francisco ∙ 👩💼 200 employees ∙ 🔗WWD
- Knotel, which leases office space to companies, laid off 127 employees (30%) and furloughed an additional 68 employees (20%). The layoffs affected multiple departments and locations. Real estate startups like Knotel continue to suffer due to the coronavirus pandemic.
- Getaround, the car sharing startup, laid off 100 employees (25%). This follows a previous round of layoffs in January. Getaround is suffering from both the coronavirus pandemic as well as a pullback in funding from its main backer, Softbank.
- 🌎 San Francisco ∙ 👩💼 100 employees (25%) ∙ 🔗BizJournals
- OneWeb, which builds satellites that provide internet access, filed for bankruptcy and announced layoffs. It said it had failed to secure further funding.
- 🌎 London ∙ 👩💼 Hundreds of employees ∙ 🔗BBC
- Zipcar, the rental car company, laid off 20% of staff. The travel industry continues to be disrupted by the coronavirus.
- 🌎 Boston ∙ 👩💼 Hundreds of employees (20%) ∙ 🔗BostonInno
- Restaurant365, which makes restaurant management software, laid off a “big chunk” of its 400 employees. It has seen a 75% decline in YoY sales.
- Textio, which helps companies write better job descriptions, laid off 30 employees (20%).
- 🌎 Seattle ∙ 👩💼 30 employees (20%) ∙ 🔗Geekwire
- B8ta, a retailer for consumer electronics and home goods, laid off over half of its corporate staff and furloughed its retail employees.
- 🌎 San Francisco ∙ 👩💼 50% of corporate employees ∙ 🔗Retail Dive
- Pivot3, which develops hyperconverged infrastructure, laid off a significant portion of its 250 employees.
- DataRobot, which helps companies manage their machine learning models, significantly reduced headcount.
🌎 San Francisco, Minneapolis ∙ 👩💼 70 employees (88%) ∙ 🖥 All departments
Brandless, a direct-to-consumer startup that makes affordable household products, is shutting down and laying off 88% of its staff (see link below for the list👇). 10 employees remain to finish the wind-down process. The company said its business model was unsustainable — a problem that has also plagued other DTC startups because competition for social media advertising has driven up customer acquisition costs. Brandless had raised $292 million, most notably from SoftBank.
Source: Google Sheets
🌎 Boston ∙ 👩💼 550 employees (3%) ∙ 🖥 All departments
Wayfair, the publicly-traded online furniture retailer, is laying off 550 employees (3% of its workforce), primarily in Boston. Reports say that after years of prioritizing growth over profits, layoffs were needed to get costs more in line.