Layoffs Roundup: Thurs 9/17/20

Well, that was fast. Just six months after everyone was warning about a startup reckoning, tech is booming again — coronavirus be damned πŸ€·πŸ»β€β™‚οΈ. 

The latest evidence? Using data from PitchBook and Layoffs.fyi, the Financial Times identified more than 20 startups that recently raised funding at higher valuations despite laying off employees (including Carta, Sonder, and Stack Overflow). 

It’s not just private markets that have recovered. Shares of data startup Snowflake gained 112% on its first day of public trading yesterday, boding well for the half dozen startups about to IPO in the coming weeks. Maybe it’s time for me to finally join all the millennialsΒ trading options on Robinhood? πŸ˜‰Β 

Despite the froth, layoffs are unfortunately still happening. I won’t be turning Layoffs.fyi into IPO.fyi anytime soon (plus, someone already registered it 2 weeks ago 😠).

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.

🏒 NS8 βˆ™ 🌎 Las Vegas βˆ™ πŸ‘© 240 employees (95%) βˆ™ πŸ”—Source

  • NS8, a fraud prevention startup, laid off nearly its entire staff. Ironically, the layoff came just days after NS8 informed employees that it was itself under investigation for fraud. The startup’s CEO abruptly resigned amid the SEC investigation, and has claimed that he β€œdid not walk away with the companies [sic] money.” NS8 raised a $123 million round of funding just months ago.

🏒 Bleacher Report βˆ™ 🌎 London βˆ™ πŸ‘© 20 employees βˆ™ πŸ”—Source

  • Digital sports media company Bleacher Report will lay off 20 employees later this month, representing nearly its entire London office. The UK staff had been focused on Bleacher Report’s football brand (what we Americans call “soccer”), and there’s speculation that this layoff is part of a series of decisions to pull back from its investment in the sport. Bleacher Report is currently owned by AT&T.

🏒 HubHaus βˆ™ 🌎 SF Bay Area βˆ™ πŸ‘© 100% of employees βˆ™ πŸ”—Source

  • HubHaus, a co-living startup that manages shared homes, is shutting down and laying off all its employees. The startup says that it failed to attract enough tenants, perhaps because the pandemic has exacerbated rental markets in cities like San Francisco. 

🏒 Welkin Health βˆ™ 🌎 SF Bay Area βˆ™ πŸ‘© 10 employees (33%) βˆ™ πŸ”—Source

  • The New York Post learned that patient healthcare software startup Welkin Health laid off a third of its workers in late April. Three days later, the company received a PPP loan worth over $1 million. Welkin claims that a declining sales pipeline caused the layoff. Since PPP loans are only forgivable if a company maintains its headcount, it’s likely that Welkin will need to pay back the loan.

Thanks to Layoffs.fyi intern Stephan Billingslea for contributing to this post.

Layoffs Roundup: Thurs 6/11/20

Startup layoffs continue to decline! πŸ“‰ This week is on track to extend the 8-week downward trend we highlighted on Monday. For another look, check outΒ TechCrunch’s analysisΒ of the Layoffs.fyi data.

Below is a recap of the layoffs from this past week. If you’ve seen a layoff spreadsheet for any of these companies, please let us know.

As always, the Layoffs.fyi Tracker maintains a comprehensive list of all startup layoffs since COVID-19.

🏒 Lastline βˆ™ 🌎 SF Bay Area βˆ™ πŸ‘© 50 employees (40%) βˆ™ πŸ”—Source

  • A network security startup, Lastline announced that it is being acquired by VMware. As part of the acquisition, VMware will be laying off 40% of Lastline’s team (around 50 employees).

🏒 The Athletic βˆ™ 🌎 SF Bay Area βˆ™ πŸ‘© 46 employees (8%) βˆ™ πŸ”—Source

  • A sports news website, The Athletic saw new subscriber growth drop by 20-30% due to the hiatus of live sports. The NBA will be the first major sports league to resume (on July 31), since MLB continues to squabble and can’t get its act together 😑🀬.. Laid-off employees will receive 4 weeks of severance pay, health insurance coverage through the end of the year, full acceleration of unvested stock options, and an extension of the exercise period to one year.

🏒 Builder βˆ™ 🌎 Los Angeles βˆ™ πŸ‘© 39 employees (14%) βˆ™ πŸ”—Source

  • A startup that makes it easy to build software without code, Builder.ai’s layoff was concentrated in its Los Angeles office. In addition, some U.K. staffers were placed on furlough, and remaining employees will be required to take a temporary pay cut. The company has experienced a drop in orders during the pandemic.

🏒 Credit Sesameβˆ™ 🌎 SF Bay Area βˆ™ πŸ‘© 22 employees (14%) βˆ™ πŸ”—Source

  • A provider of free credit monitoring, Credit Sesame earns revenue by making commissions from its credit card and loan partners. The company implied that its revenue has been affected by tightening credit markets, which has made it hard for consumers to borrow money or obtain credit. Larger rival Credit Karma announced last month that it was instituting pay cuts of between 15-50% and freezing promotions.

🏒 Ethos Life βˆ™ 🌎 SF Bay Area βˆ™ πŸ‘© 18 employees (14%) βˆ™ πŸ”—Source

  • A provider of life insurance, Ethos Life said the layoff was caused by “uncertainty with future consumer demand and capital markets.” Ethos had grown its team size from 30 employees in the beginning of 2019 to almost 130 people prior to the layoff.