As part of its second layoff in months, virtual event platform Hopin has parted ways with its COO, CFO and chief business officer, TechCrunch has learned from multiple sources.
It is not clear if the executives left voluntarily or were fired. Former COO Wei Gao, CFO Mark Masters and Chief Commercial Officer Michael Kostow did not respond to requests for comment. A spokesperson for Hopin confirmed via email that the trio was “leaving the business,” adding that “after much discussion, we all agreed that this is the best path forward for the business.”
The loss of senior executives puts a growth-stage company that was once considered ready for an IPO this year into a precarious position at a tipping point for venture capital startups in need of improved operational efficiency.
The sources also say Hopin is hiding the overall impact of yesterday’s workforce cuts. Yesterday Hoping said that 242 people were laid off, or 29% of employees and said that some contractors and outside team members were fired. He did not give exact numbers. Sources and internal documents show that Khopin’s reorganization affected about 350 people, including those based overseas.
Cuts come just four months after Hopin laid off 12% of its workforce, while referring to the goal of sustainable growth amid a changing market. This time, the company again referred to the “macro-economic climate” and said the cuts would help the “event product move forward effectively.”
The spokesperson claims that Hopin is not near the end of its runway and will instead optimize to offer a more diverse range of products. Note that Hopin acquired 5 startups last year, revealing only that it paid $250 million for Streamyard. The purchase appears to have played a role in Hopin’s first round of layoffs, a 12% cut in February as the company said it needed to reorganize to meet its goals.
CEO and Founder Johnny Bufarhat remains in a company whose business was last valued at $7.75 billion.
In a memo sent to employees and obtained by TechCrunch, Bufarhat told the remaining employees that there will be more details next week on how the company will move forward.
“To create a profitable and sustainable company, a more substantial restructuring is needed, in particular the simplification of our events business,” the founder wrote.
Current and former Hopin employees can contact Natasha Mascarenhas via email at [email protected] or via Signal, a secure encrypted messaging app, on 925 271 0912.
Credit: techcrunch.com /