A16z-backed company Loom lays off 14% of employees a year after becoming a unicorn

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Loom, the corporate video messaging service for collaboration, laid off 34 employees, or 14% of its total workforce, the sources say. Product and HR employees were affected.

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The venture capital-backed company confirmed the layoff and the number of people affected, and released the following statement from founder and CEO Joe Thomas:

“We had to make an extremely difficult decision to move forward with the downsizing of our team. Each victim was not only a talented employee, but also a valuable person and teammate. We are committed to supporting these employees during this transition in both their severance package and career support. We are confident in the future of Loom. Ultimately, this decision was made to ensure that we can move forward sustainably, especially in light of increased economic uncertainty, and continue to realize our vision for years to come.”

The company was founded by Thomas and Vinay Hiremat in 2015 and just three years later it had 1.8 million users across 50,000 companies. According to the website, Loom currently has 14 million users across 200,000 companies including Netflix, Atlassian, Hubspot, and Juniper Networks.

Like Hopin, Loom has benefited from more people working from home in response to the COVID-19 pandemic; The product was designed to help remote workers find the best ways to connect with colleagues in the virtual world, as well as help hybrid workers find an easy way to skip some meetings. Then, looks like Hopin again The startup has made layoffs to help it build what it describes as a more sustainable path forward.

This growth has attracted $203 million in high-profile venture capital, and most recently the company announced Serie C led by Andreessen Horowitz. In the same round, the company was valued at $1.53 billion, making it a unicorn for the first time. Kleiner Perkins, Sequoia, Coatue and General Catalyst are also investors in the company.

It’s been over a year since the startup received new funding and valuation, and according to today’s news, Loom is joining the club of unicorns who have had to cut their workforce after hitting the coveted milestone.

Less than a year ago, visual tools startup Picsart raised $130 million from SoftBank, earning a valuation of over $1 billion. Company fired 8% of its employees last month, affecting 90 people. Cameowhich also became a unicorn last year, also recently carried out layoffs that affected 87 people.


Credit: techcrunch.com /

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