Tech workers face another tough week of layoffs at various stages

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Unfortunately, something more happened last week. After massive layoffs last week in the tech industry, this week has seen another dose of staff cuts at tech companies. The impact has been felt in every industry, from education to security, and from a startup post-Series A to a business that recently received a SPAC.

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Below, we’ve listed the latest companies that have fired talent in response to the reset happening in the startup world. Greetings Layoffs.fyia tracker that collects tips, spreadsheets of affected employees, and other layoff details in one place.

Section 4

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Section 4a skills development startup launched by a renowned NYU professor Scott Gallowayfired a quarter of the staff, sources say. The layoffs that took place last week affected employees of all seniority levels and teams, but especially affected most of the product team. The startup first appeared on the scene in 2019 with the goal of scaling business school-level courses in a more accessible and fully virtual way.

CEO Greg Shov confirmed details of the firing to TechCrunch via email and said 32 people were affected. The chief executive declined to reveal details of what was offered to affected workers, but said the severance pay was “on the market or better.” Shov added that there is no suspension of hiring and that the company will continue to hire people in the engineering and corporate fields. He adds that part of this hiring focus is that the startup is moving faster in serving the enterprise than individual consumers, so the hiring will reflect that.

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Layoffs are a dramatic way to change strategy, but they also signal that a company needs to be on the defensive before it can completely change. As we’ve been reporting for months, consumer learning tech has been flirting with enterprise sales to avoid revenue volatility. (and tighter contracts).

Karvana

Carvana, a used car dealership that went public in 2017, 2500 employees laid off as part of the company’s “previously announced plans to better align staff levels and costs with sales volumes,” he says. in submission. According to the same document, Alex Wilhelm reports, the company offers laid-off workers four weeks of wages plus an additional week for each year they work for the company. The company claims that the executive team is waiving their pay until the end of the year to contribute to the severance pay.

On Thursday, the mobility and e-commerce startup surged. after hitting a two-year low earlier. Perhaps this is how the market reacts to people who lose their jobs? Short squeeze?

Latch

Latch, an enterprise SaaS company that makes keyless entry systems, has struggled over the past few months, from a difficult SPAC debut to parted ways with their chief financial officer, Garth Mitchell. Well, it looks like business volatility has now leaked out to employees: The public company has reportedly laid off 30 people, or 6% of its total workforce, according to an email obtained by TechCrunch.

Datarobot

In 2019, DataRobot has just raised $206 million in Series E round from Sapphire Ventures, Tiger Global Management and several other firms. Then, just weeks after the emergence of COVID-19 in the US, a Boston-based machine learning company held layoffs due to “uncertainty“. Fast forward to the present: DataRobot laid off another 7% of its workforce this week. It is estimated that layoffs will affect approximately 1,000 employees, about 70 people. In an email to employees received InformationCEO Dan Wright said the layoffs were in response to changing market conditions after aggressive hiring last year (Trend we saw layoffs last week).

“This level of investment is no longer sustainable for our business, especially in the context of broader market changes where investors are now more focused on performance and costs,” he said in an email.

Meta, Twitter and Uber freeze hiring

But wait, that’s not all… In the wake of questionable first-quarter earnings and losses, some big tech companies are in trouble.

Let’s start with Meta, nee Facebook. Mark Zuckerberg is doing his best to create a metaverse, having just discovered its first brick shop. He also just showed off what’s in the company’s next headset, dubbed “Cumbria Project”, which will include mixed reality in the headset. But in Only Q1Meta’s Reality Labs – its VR and AR team – lost $2.96 billion, and last year Reality Labs lost more than 10 billion dollars. Meanwhile, Facebook user growth has become relatively stagnant.

Last week, Insider informed that Facebook CFO David Wehner wrote in an internal memo that hiring would be put on hold in most engineering teams for the rest of the year, citing an “industry-wide downturn.” Then, this week, Reuters reported that the Meta was preparing cuts at Reality Labs, which is a bad omen for her… growing business in the metaverse. The offers of some candidates for work at Meta have been cancelled. viral post on LinkedIn.

Twitter employees also face a moment of uncertainty as they wait Elon Musk’s upcoming takeover. Yesterday, CEO Parag Agrawal, who is expected to be replaced once the deal to acquire Musk is completed, asked two key leaders Leave. The company is also suspending hiring, which is not uncommon after M&A deals.

“Starting this week, we are suspending most hirings and fillings, except for business-critical roles. We are also cutting non-labor costs to be responsible and efficient,” a Twitter spokesperson told TechCrunch.

And then that brings us to Uber, which valued lower now than in mid-2019.

“It is clear that the market is going through a seismic shift and we need to respond accordingly,” CEO Dara Khosrowshahi. wrote. He added: “We will treat hiring as a privilege and will consider when and where to increase headcount. We will be even tougher on spending across the board.”

A company that requires drivers and passengers to sit in a car together is having a hard time dealing with a pandemic. But Khosrowshahi’s note highlighted investor interest in products like Uber Eats that differentiate their services from competitors like Lyft. However, food delivery not the most profitable business either.

Unfortunately, in such situations, workers are most often affected, whether they are technical staff or employees.

Khosrowshahi ended his note with an attempt at optimism (?) in turbulent times.

“GO GET IT!” he said.




Credit: techcrunch.com /

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