Brutal May tech layoffs top 15,000 – TechCrunch

The tech industry has had a rough month.we have collected Week back Week layoffs, and according to aggregators layoffs.fyi, more than 15,000 tech workers lost their jobs this month. Hope the sun will come out in June.

Many tech companies that have enjoyed a pandemic-related surge are facing a correction due to a combination of factors including rising inflation, economic woes, wars and changing consumer taste buds.Companies including Meta and Twitter have publicly announced hiring freezes, while Snap confirmed this week that it is slowing hiring Because it fell short of revenue goals.

Notably, the change in hiring rhythm, With the big resignationwhich could mean a net reduction in the number of employees in the aforementioned companies, as people leave and companies are slow to fill these vacancies.

vertical

On Thursday, enterprise e-commerce platform Vtex announced it would lay off 193 jobs. about 13% The team of the Brazilian unicorn.

“The world is changing fast and we need to adapt,” founders and co-CEOs Geraldo Thomaz and Mariano Gomide de Faria a letter to employees“Decisions to cut staff were viewed as strategic judgements around what organizational structure would provide our adjusted priorities.”

The founders say they have no plans for another round of layoffs, and despite their “high-efficiency mindset,” they won’t cut back on their investment in talent development. Vtex has also compiled an opt-in public spreadsheet for laid-off workers to share information that they are looking for work. So, if you are looking for fintech talent in Brazil, here you go.

Paypal

PayPal fired dozens of employees at its San Jose headquarters, documents show.as the first Reported by The Information It was later confirmed by TechCrunch that the layoffs affected 83 employees. That’s just a fraction of PayPal’s workforce of more than 30,000.

PayPal’s layoffs, while just surfacing, come about a week before the fintech firm confirmed the layoffs template its San Francisco office. When asked about this round of layoffs, a PayPal spokesperson told TechCrunch that it is “continuously evaluating how we work to ensure we are ready to meet the needs of our customers and operate with the best structure and processes to support us. strategic business priorities as we continue to grow and develop.”

It did not speak directly about applications and layoffs, but said it would continue to hire. PayPal did not provide specific details about offering severance packages to affected employees.

Gettier

Getir — the $12 billion fast commerce startup — is 14% layoffs globally. The Turkish company is estimated to employ around 32,000 people in nine markets, meaning these layoffs will affect around 4,480 people. The company also said it would slow hiring, marketing investments and promotions (not the HR category, the category that offers coupons to hungry customers).

Just two months ago, Getir improve With another $768 in funding, the company is valued at $12 billion as it seeks to get groceries to customers in minutes. Like other startups, we may see valuations drop.

“Getir’s plans to serve in the nine countries in which it operates have not changed. During these difficult times, we are committed to leading the ultra-fast grocery delivery industry we pioneered seven years ago,” Getir wrote in a memo to employees.

The express delivery business is a challenging profit space, and the macroeconomic downturn is obviously not helping. U.S. couriers have also been affected — as has Philadelphia-based startup Gopuff. downsize Earlier this year, and postponed the listing plan.

Gorilla

Gettier’s competitor, Gorilla It also had a rough week of layoffs, laying off about half of its staff at its Berlin headquarters.

This Instant grocery delivery company raises nearly $1 billion at just $3 billion valuation seven months ago, but this week, about 300 layoffs.The company will also pull out of Italy, Spain, Denmark and Belgium and shift its focus to its home market of Germany as well as France, the Netherlands, the UK and the US

The company estimates it will drop to the final $300 million, a source told TechCrunch’s Ingrid Lunden. That might sound like a lot, but it’s not the case when you’re not making a profit and spending between $500 and $75 million a month. Gorillas refused to confirm the claim.

From Getir to Gorillas, we may be watching a market correction after instant delivery became a necessity during pandemic lockdowns. While we can’t avoid COVID-19 yet, many customers are now more confident about going to the grocery store than they were in 2020. Therefore, courier companies are facing challenges.

latch

Latch, a proptech smart lock company, raised $152 million in known private capital prior to its stock market debut via a SPAC last year, Another round of layoffs is underway. Earlier this month, the startup laid off 30 jobs, or 6% of its workforce, according to an email obtained by TechCrunch.

Now, as confirmed in a press release late Friday, Latch announced a total of 130 layoffs, or 28% of its full-time workforce. The layoffs affected chief revenue officer Chris Lee and vice president of sales Adam Sold, the sources said.

In emails seen by TechCrunch, Latch CEO Luke Schoenfelder told employees that the first round of layoffs was to “ensure Latch is on a path to sustainable growth.” He also said that Latch will reduce certain areas of the business, but we’re not sure if that means cutting the entire product or just the resources behind each vision. TechCrunch reached out to Latch about the layoffs this week, but had not heard back as of press time.

break off

Worse yet: Missing your revenue goal, or filing ahead with the SEC saying you won’t be able to hit your revenue goal?That’s what Snap did this week, in an 8-K It expects second-quarter 2022 revenue and adjusted EBITDA to be lower than its expectations, the filing said.

CEO Evan Spiegel spoke to Snap in a company memo obtained by TechCrunch.Consistent with his period comments Earnings for the previous quarter, he wrote, that Snap’s revenue has fallen due to inflation, as well as the impact of the war in Ukraine on advertising. Spiegel also said that last year’s iOS Privacy Changes continue to influence the company.

According to the memo, Snap plans to hire more than 500 team members this year and has already accepted 900 offers. Hiring was up 41% year over year, but new hires weren’t as many as the company had planned, as it delayed some planned hires until 2023. Spiegel’s letter noted that the pace of hiring for unfilled positions would slow, but didn’t spell out how current vacancies might be affected.

Spiegel added that if existing employees leave, Snap will fill vacancies as long as those positions are high-priority.Also, Snap leaders are advised to review their budgets to find ways to cut costs — hopefully that doesn’t mean layoffs.

Klarna

Buy now pay later company Klarna had two big bad news this week.First, the Wall Street Journal report It’s lowering its valuation to raise new venture capital, which isn’t a great option for a company that’s already raised capital over $3 billionThe news comes less than a year after the Swedish fintech giant raised $639 million at a $45.6 billion valuation (led by SoftBank’s Vision Fund 2).

Then, another shoe fell: Klarna co-founder and CEO Sebastian Siemiatkowski announced to 7,000 employees The company will lay off 10% of its workforcewhich means 700 people will lose their jobs in exchange for severance pay.

“I’m no stranger to sharing good and bad news. However, today was the toughest day yet,” Siemiatkowski wrote in a message to employees. “As much as we might hope, Klarna doesn’t exist in a bubble.”

The CEO’s message did not list a clear reason for the layoffs, but cited a variety of changing macroeconomic and geopolitical factors that have gradually affected the fintech company.

“When we laid out our business plan for 2022 last fall, it was very different from the world we live in today,” he said. “Since then, we’ve seen a tragic and unnecessary war in Ukraine, a shift in consumer sentiment, a sharp rise in inflation, a highly volatile stock market, and a possible recession.”

After the layoffs were announced on Monday, Klarna did not immediately tell employees whether they would keep their jobs. Instead, they had to wait to get a calendar invite to find out what their fate would be for the rest of the week.At least Klarna let them work from home” considering [their] privacy. “

bolt

One-click checkout startup Bolt has laid off at least 100 employees, including in marketing, sales and recruiting positions, sources said.CEO Maju Kuruvilla confirms job cuts in a blog post But it did not say how many people were affected or which roles were targeted.

“It’s no secret that market conditions in our industry and tech are changing, and we’ve been taking steps to adjust our business in the face of macro challenges,” Cuvira wrote in a blog post. “To ensure Bolt is in control of his own destiny, the leadership team and I have decided to secure our financial position, expand our runway, and use the capital we have raised to become profitable.”

As of May 26, Report Said the number of affected employees was actually 185, or one-third of Bolt’s workforce.

Instacart

Instacart, a grocery delivery company that has seen demand for its services soar during the pandemic, is slowing hiring.as first reported New York Post And confirmed by TechCrunch.

“Last year we hired more than 1,500 people and nearly doubled the size of our engineering team. As part of our plans for the second half of the year, we are slowing hiring to focus on our most important priorities and continue to drive profitable growth,” Instacart said in a statement to TechCrunch.

Instacart is no stranger to tension. In March, a day after announcing new growth plans, The company slashed its valuation From about $39 billion to $24 billion, an increase of nearly 40%.

​​Co-founder Apoorva Mehta resigned as CEO of Instacart in July, to be replaced by Facebook executive Fidji Simo. Her ascension to CEO comes as the pandemic subsides and parts of the world begin to reopen, a pivotal moment for the company to rethink how it operates. Under Simo’s leadership, several executives left, including the head of payments and the head of talent.