10 startups, including ClassPass and TheWing, have begun cutting significant proportions of their workforces just this week
Tech startups have not been spared from the coronavirus outbreak, which has prompted historic layoff activity Just this week, at least 10 startups have shaved off significant proportions of their workforce, including female co-working space The Wing and workout-subscription startup ClassPass. Visit Business Insider's homepage for more stories.
A wave of startup layoffs prompted by the coronavirus pandemic appears to have hit almost every sector — travel companies like TripActions, child-care startup Wonderschool and electric scooter startup Bird have all been forced to lay off workers in recent weeks. Venture-backed startups are grappling with a new economic reality brought by the coronavirus pandemic — plans to raise funding are dissolving rapidly as the threat of a recession grows. Already, funding for private companies has fallen by 12% according to CB Insights and it seems likely to dry up further. There are also reports from founders saying investors are using the COVID-19 pandemic to renege on deals, Business Insider previously reported. So as startups begin to draft emergency plans to conserve cash this week, job cuts across the ecosystem have ramped up further, even as the coronavirus outbreak prompts historic layoff activity across the entire US economy. Business Insider is tracking the layoffs and what's happening at each company. The numbers are based on our own reporting as well as media reports elsewhere. Coco-Cola-backed buzzy startup Iris Nova laid off 50% of its staff
Source: Business Insider Women-focused coworking space The Wing laid off almost all of its space teams and half its headquarters
Source: Fast Company ClassPass has cut or furloughed the jobs of half of its employees
Source: CNBC Austin-based unicorn RigUp laid off 25% of its workforce
Source: AmericanInno Services-focused platform Thumbtack cut 250 employees
Source: Thumbtack Pet-care startup Rover laid off 41% of its workforce
Source: GeekWire Overtime, the Kevin Durant-backed sports media startup, laid off 20% of its employees
Source: Business Insider KeepTruckin laid off 349 employees
Source: FreightWaves DTC lingerie startup ThirdLove cut between 30-35% of its staff
Source: Business Insider E-commerce company Modsy laid off an unspecified number of staffers
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The coronavirus outbreak has triggered unprecedented mass layoffs and furloughs. Here are the major companies that have announced they are downsizing their workforces.
The spread of the coronavirus is projected to impact millions of jobs worldwide. In just 22...The spread of the coronavirus is projected to impact millions of jobs worldwide. In just 22 weeks, more than 57 million Americans have filed for unemployment insurance — that's more than the number of claims filed during the Great Recession. The travel and hospitality industries have taken a significant hit. In addition to major airlines, businesses such as ride-share company Uber and hotel giants Hilton and Marriott have announced furloughs. Here's a roundup of the major companies who have announced downsizing their workforce due to the coronavirus thus far. Visit Business Insider's homepage for more stories. This is a developing story. Check back for updates.SEE ALSO: 15 major companies that have announced employees can work remotely long term On August 25, American Airlines, which previously announced cutting 20% of the company's workforce, said that it would cut 19,000 employees in October when federal aid ends. Source: CNBC Delta Airlines plans to furlough 1,941 pilots in October following the expiration of federal aid, the company said on August 24. Source: CNN In April, Boeing committed to cutting its massive staff by 10%. In an August 17 memo, Boeing told employees it was starting a second round of buyout offers that would extend beyond the original expected numbers. Source: Wall Street Journal WarnerMedia started layoffs on August 10. The first round of cuts are expected to impact 600 employees, mostly at Warner Bros. The cuts include top executives. Source: Business Insider, Deadline AT&T laid off an additional 54 people in its marketing division on August 6, after laying off 3,400 employees in June. Source: Business Insider NBCUniversal started layoffs on August 4, impacting its broadcast networks, movie studio, and theme parks. The company is expected to cut less than 10% of its 35,000-person workforce. Source: Wall Street Journal In a July 30 internal memo, United Airlines said it would furlough a third of its pilots — 3,900 people. The airline previously announced on July 8 that it would issue layoff and furlough notices to 36,000 employees, including 2,250 pilots and 15,000 flight attendants. Previously, in a leaked May 4 memo, United Airlines said it expects to lay off at least 30% or some 3,400 employees on its administrative staff. Sources: Business Insider, Chicago Tribune, Business Insider, The Points Guy Spirit Airlines is preparing to furlough 20-30% of its workforce, according to a July 28 internal memo. Those at risk include pilots and flight attendants. Source: Reuters L Brands, the parent company of Victoria's Secret and Bath & Body Works, said it would lay off 15% of its workforce on July 28. The job cuts impact 850 people at the company's Columbus, Ohio, headquarters. Source: Business Insider Creative Artists Agency, a major Los Angeles talent firm, announced layoffs on July 28. It will layoff 90 agents and furlough 275 assistants — or nearly 20% of its workforce. Source: Los Angeles Times, Billboard Oilfield services company Schlumberger said it is cutting roughly 21,000 jobs on July 24. It also reported second-quarter losses of $3.4 billion. Source: Wall Street Journal Daimler, the company that owns Mercedes-Benz, may cut 30% of its global workforce, Manager Magazine reported on July 22. Source: Manager Magazine, TeleTrader Tailored Brands, the parent company behind Men's Wearhouse and Jos. A. Bank, said it expects to layoff 20% of its workforce and shutter 500 stores on July 21. Source: Business Insider LinkedIn said it would cut 960 jobs, or 6% of its global workforce, on July 21. The cuts will impact hiring and sales positions. Source: Reuters Instead of involuntary layoffs, Southwest Airlines offered extended leave and exit packages. As of July 20, 28% of its workforce — mostly pilots and flight attendants — have accepted such deals. Source: Reuters On July 15, American Airlines said that it will soon layoff 25,000 workers, including 9,950 flight attendants and 2,500 pilots. The cuts represent almost 20% of the company. Source: Business Insider Department store JC Penney announced that it would shutter 152 stores and lay off 1,000 jobs in corporate and field management on July 15. The company filed for bankruptcy in May and furloughed thousands in April. Source: Reuters, Business Insider PVH Corp, the company that owns Calvin Klein and Tommy Hilfiger among other brands, announced that it is shuttering 162 stores and cutting 450 jobs, or 12% of its workforce, on July 14. Source: Business Insider On July 9, Bloomberg Law reported that Wells Fargo is preparing to cut thousands of jobs out of its 263,000-person workforce. Source: Reuters, Bloomberg Law Walgreens said it plans to cut 4,000 jobs on July 9, after reporting a $1.7 billion loss in the third quarter. Source: Bloomberg, Business Insider Levi's, the denim company, announced on July 7 it was slashing 700 jobs. The cuts account for 15% of its total workforce. Source: Business Insider While Macy's furloughed the majority of its workforce in March, it announced it would lay off about 3,900 corporate workers on June 25. Source: Business Insider HSBC, Europe's biggest bank, announced plans to cut 35,000 jobs — or 15% of its global workforce — across the US and Europe on June 17. Source: Business Insider, Wall Street Journal On June 16, a union representing AT&T employees said the wireless carrier will lay off 3,400 and shut down more than 250 stores. Source: Business Insider Hilton Hotels announced it is laying off 2,100 corporate employees on June 16, amounting to 22% of its corporate workforce. Source: CNN Chevron, the second-largest oil producer in the US, announced that it will cut 10% to 15% of its 45,000 global workforce on May 27. Source: Reuters Boeing said it would lay off nearly 7,000 employees on May 27. The company initially announced that it would cut about 10% of its workforce on April 29. The company had 143,000 workers at the beginning of the year. Source: Business Insider, Business Insider IBM will eliminate "several thousand jobs" as of May 22, mainly in the company's technology-services division. Cuts come a month after new CEO Arvind Krishna withdrew IBM's financial outlook amid economic uncertainty caused by the pandemic. Source: Business Insider Weeks after ride-hailing giant Uber announced it is cutting 3,700 jobs (14% of its workforce), CEO Dara Khosrowshahi announced on May 18 that he will cut 3,000 additional jobs and close 45 offices. Source: Business Insider, WSJ Airbnb announced it is laying off about 25% of its workforce, or 1,900 employees, on May 5. Its severance package includes several months' pay, a year of healthcare, and support finding a new job. Source: Business Insider Richard Branson's Virgin Atlantic announced it would cut 3,150 jobs on May 5, in addition to retiring its iconic Boeing 747-700 planes a year early. Source: Business Insider Ride-hailing company Lyft is laying off 982 employees and furloughing another 288, accounting for 17% of the company's workforce. The company made the announcement on April 29 and added that other cost-cutting measures include pay cuts for executive leadership. Source: Business Insider On April 28, online travel company TripAdvisor announced it was laying off more than 900 of its employees, amounting to a quarter of its workforce. Source: Business Insider Hertz said it plans to lay off 10,000 employees on April 20. The car rental company previously employed 38,000 people. Source: Reuters On April 12, a union representing workers at Walt Disney World said the company will be furloughing 43,000 employees starting April 19. The amusement parks have been closed since March 16 and 200 essential workers will continue maintaining them. Source: New York Times, Vox On April 7, Tesla sent an email to employees saying it will furlough all nonessential workers until at least May 4, and reduce all employees' pay by at least 10%. These cost-cutting measures are expected to start April 13. Source: Business Insider, CNBC JCPenney has already started furloughing workers and confirmed it would continue to furlough a "significant portion" of its 85,000 employees as of April 5. Source: JCPenney, Business Insider On April 3, Under Armour announced that it will temporarily lay off about 6,700 employees starting April 12. Source: Baltimore Sun The Wing, a buzzy Instagram-ready women's coworking company, is laying off nearly all of its hourly employees and half of its corporate staff as of April 3, according to Vice. The company confirmed the layoffs but did not elaborate on numbers. Its founders are foregoing their salaries. Source: Vice ClassPass, the billion-dollar fitness platform, furloughed or laid off over half of its 700 employees on April 2 — 22% were laid off and 31% were furloughed. Source: CNBC On April 2, airplane manufacturer Boeing announced that it would offer a voluntary layoff plan to employees to cut costs. Those opting into the layoff plan will leave with a pay and benefits package, but the company offered no details about compensation. Source: Business Insider Famed auction house Sotheby's is furloughing 200 people — or 12% of its workforce —as of April 1, according to the Wall Street Journal. Source: Wall Street Journal Sephora laid off over 3,000 employees across the US via conference call on March 31. "It is our sincerest hope that we are able to bring these employees back on staff in the near future," Sephora said in a statement. Source: Business Insider Macy's CEO Jeff Gennette informed his staff via email that the company would be furloughing most of its 125,000 employees on March 30. The company only plans to have work for "the minimum number of employees necessary to maintain basic business operations" across Macy's, Bloomingdale's, and Bluemercury, Gennette wrote. He will stop receiving his salary, along with the rest of the board of directors. Source: Business Insider, CNN Bird, the buzzy electric scooter company, laid off 30% of its staff via a Zoom call on March 27. The call lasted only around 2 minutes. Source: Business Insider Everlane, the clothing retailer focused on ethical sourcing, laid off over 200 employees and furloughed 68 others on March 27. CEO Michael Preysman will reduce his salary to zero. Source: Vice ZipRecruiter laid off 443 employees and furloughed dozens more on March 27, days after CEO Ian Siegel said the billion-dollar online job-hub company was safe. Source: Business Insider Sonder, a billion-dollar apartment-rental startup billed as a hospitality industry disruptor, laid off or furloughed 400 people — one third of its workforce — on March 24, according to The Information. Source: The Information GE announced that it will be reducing approximately 10% of its aviation unit's workforce, amounting to about 2,500 employees, on March 23. It also announced a three month furlough impacting 50% of its maintenance and repair employees. GE CEO Larry Culp will forgo his salary for the rest of the year, while GE Aviation CEO David Joyce will give up half of his salary. Source: GE, Wall Street Journal According to the Washington Post, at least 200 workers across President Trump's hotels in Washington DC, New York City, and Las Vegas were laid off as of March 20. Other Trump properties, like Palm Beach's Mar-a-Lago, have temporarily closed. Source: Washington Post, Business Insider Air Canada announced it is set to lay off more than 5,100, or 50%, of its flight crew on March 19. Renee Smith-Valade, the airline's vice president, called the decision "difficult but necessary" in a statement. Source: CBC Cirque du Soleil announced it is laying off 95% of its 4,679 person staff on March 19, a week after canceling all its upcoming performances. The circus producer kept 259 staffers to plan and sell tickets for future tours. Source: Cirque du Soleil, Forbes New York's Metropolitan Opera is the largest performing arts organization in the US by budget. On March 19, the Met laid off all of its union employees for the duration of the coronavirus outbreak. The Met also announced the cancellation of all performances through the end of the 2019-2020 season, which was set to end May 9. Source: NPR Famous restaurateur Danny Meyer's Union Square Hospitality Group, which owns beloved NYC staples like Gramercy Tavern, laid off 2,000 employees, or 80% of its workforce, on March 18. Source: Business Insider Pebblebrook Hotel Trust, which owns over 50 hotels in the US including the W in Los Angeles, laid off 50% of its 8,000 employees on March 17. CEO Jon Bortz also told the Los Angeles Times that the company may need to lay off an additional 2,000 employees by the end of the month. Source: Los Angeles Times Marriott International, the world's largest hotel company, said it has started to furlough what could amount to tens of thousands of employees on March 17. Furloughs, as opposed to layoffs, occur when employees are required to take an unpaid leave of absence. Arne Sorenson, the president and CEO, announced that his own salary will be suspended for the rest of the year and senior executives' salaries will be reduced by 50%. Source: Wall Street Journal, Business Insider, Business Insider Norwegian Airlines announced the temporary layoff of 90% of its workforce on March 16, amounting to 7,300 employees. The airline also canceled 85% of its flights. Source: Reuters Scandinavian Airlines (SAS) announced that it would temporarily lay off 10,000 employees — 90% of its staff — on March 15. SAS also halted the majority of its flights and is operating with limited service. Source: Forbes
Venture-backed startups are laying off thousands of tech workers as the coronavirus strains finances. Here's a list of all of the startups that are cutting headcount.
Venture-backed startups have begun laying off employees, as the coronavirus and the subsequent economic shutdown has...Venture-backed startups have begun laying off employees, as the coronavirus and the subsequent economic shutdown has wreaked havoc on companies large and small. Business Insider is keeping a list of running list of startups that are slashing headcount. Visit Business Insider's homepage for more stories. Technology Lyft is laying off nearly 1,000 employees — 17% of its workforce — as the coronavirus sends the ride-hailing industry into a nosedive Envoy, the Andreessen Horowitz-backed startup that sold software to Airbnb, Asana and Slack, just cut 30% of its workforce as a work-from-home era disrupted its pitch to revolutionize the workplace Leaked memo: Troubled SoftBank-backed robotics startup Zume just conducted a 2nd round of sweeping layoffs after funding fell through Austin unicorn startup RigUp went from hiring 'at a rapid pace' to cutting 25% of staff in a matter of weeks. Now a data breach is adding to its woes. $967 million startup DataStax laid off 15+ employees last week — its third round of job cuts since its new CEO joined in October $1.5 billion ZipRecruiter just laid off hundreds only days after the CEO said the economy was headed for a steep increase in hiring after the end of the coronavirus The CEO of Voi, scooter rival to $2.5 billion Bird, goes public on why it furloughed and laid off staff to cope with COVID-19 Electric scooter startup Bird has laid off 30% of the company in a scramble to preserve a 'cash runway' to last until the end of 2021 TripActions, the $4 billion Andreessen Horowitz-backed corporate travel startup, just laid off 296 employees as the travel industry grinds to a halt Andreessen Horowitz-backed Wonderschool just laid off 75% of staff on a Zoom call, telling employees the coronavirus could dry up any more funding for 2 years O'Reilly Media, known for its influential open source conferences and books about coding, has laid off 75 people and shuttered its events business Pay-by-the-minute fitness app Popin has shut down, according to an email sent out to its users Consumer Buzzy luggage startup Away has furloughed half of its staff and laid off 60 employees as the coronavirus continues to crush the travel industry ThirdLove, the buzzy lingerie upstart that challenged Victoria's Secret's dominance, just laid off nearly 30% of its workforce as the coronavirus crushes DTC companies Iris Nova, the buzzy direct-to-consumer startup backed by Coca-Cola, has laid off half its staff as the coronavirus pandemic hits its retail business Startups like ClassPass and The Wing have cut significant portions of their workforce Media A leaked memo reveals that the Kevin Durant-backed sports media startup Overtime just laid off 20% of its staff, and won't give affected employees healthcare or severance unless they sign a confidentiality agreement Real Estate and Travel Airbnb is cutting 25% of staff — 1,900 jobs — after its business has been slammed by the coronavirus crisis SoftBank-backed iBuyer Opendoor just slashed 35% of staff after the coronavirus forced the startup to halt its home-flipping operations Flex-space unicorn Knotel just laid off 30% of workers and furloughed another 20% as the coronavirus cripples a once buzzy industry SoftBank-backed real estate brokerage Compass just slashed 15% of staff and is pausing marketing as coronavirus slams the housing market Days after laying off 20% of its workforce, Brookfield-backed Convene furloughs more than half of remaining employees due to coronavirus closures Airbnb-backed Zeus Living just laid off 30% percent of staff as the coronavirus upends travel and hospitality startupsJoin the conversation about this story »