Editor's note: This post will be updated regularly with new information. Last updated on May 18, 2022.
In the depths of winter, startup land remained red-hot. Venture capitalists shoveled $71 billion into startups in the first quarter of 2022, off just slightly from last year’s highs, per PitchBook data. Stock markets climbed ever-higher, feeding the coffers of publicly traded tech juggernauts. Employers scrambled to fill open positions, as workers quit en masse and demanded higher pay and better conditions.
But by April, it all started crashing down as soaring prices and interest rates rocked the economy. The shift to austerity began with public tech companies: Netflix’s market capitalization cratered by $50 billion after it reported diminishing subscriber counts for the first time in a decade, and days later, the streamer eliminated dozens of jobs. Amazon, Alphabet and Tesla each saw their valuations plummet by at least 20%. Startup leaders began bracing themselves for turbulence ahead, once again weighing layoffs as a means of controlling burn rates and attracting new capital. The greatest risks might lie at startups that grew precipitously during the pandemic to meet unexpected demand booms.
The Org’s team of journalists is tracking the latest layoffs at U.S.-based tech firms large and small. We’ll be updating it regularly, as necessary. The list is in reverse chronological order, with newer announcements at the top:
Netflix is laying off some 150 employees across the company, less than 2% of its 11,000-person global workforce. “Our slowing revenue growth means we are also having to slow our cost growth as a company,” the company told CNBC on May 17. It's the second layoff wave to hit the streaming giant following its first subscriber dip in a decade. On April 28, Netflix also shuttered its editorial arm Tudum just five months after it launched--cutting at least 10 writers and 25 marketers along with it.
AI photo-editing app startup Picsart cut 90 workers, around 8% of its workforce, The Information reported on May 17. The Miami-based startup fetched a $1.2 billion valuation in a Series C round led by SoftBank last August.
Home fitness startup Zwift cut nearly 150 employees and nixed plans to develop a "smart bike" on May 12, per DC Rainmaker. The company blamed the "current macroeconomic environment" for the layoffs.
The decade-old AI company said it was cutting 7% of its 1,000-person staff on May 11, per The Information. The layoffs follow more than 50 reported resignations over the past month at the NEA- and Tiger Global-backed Boston startup.
Online used car retailer Carvana revealed it had cut approximately 2,500 employees--about 12% of its workforce--in a SEC filing released May 10. The Arizona-based company said the layoffs primarily impacted “operational groups.” Execs are forgoing salaries for the rest of the year to fund the four-week severance packages.
Reef, the Miami-based, Softbank-backed ghost kitchen company plans to imminently lay off 750 workers, The Information reported on May 6. “This move proved to be timely and necessary as we observe the current state of the economy,” CEO and co-founder Ari Ojalvo said in a leaked memo.
Protocol reported on May 6 that at least nine employees from Mural, a startup that creates online collaboration tools, were laid off. "Mural has made certain staffing reductions, focused on redundancies while scaling back projections on headcount increases for 2022," a spokesperson wrote.
On Deck, a startup connecting founders with other founders and to capital, laid off 25% of its staff, or about 72 people, mainly in operations and investing roles on May 5, TechCrunch reported.
MainStreet CEO Doug Ludlow announced in a May 4 tweet that his startup, which helps other startups uncover tax credits, had laid off about 30% of its staff. “We took this action because we believe that there is a very strong chance that today’s incredibly rough market is only going to get worse, and potentially remain so for months, if not years,” he added.
In what its CEO and co-founder Steven Galanis called a “painful but necessary course correction” in a statement, celebrity video shoutout app Cameo laid off 25% of its workforce on May 4, The Information reported.
Amazon aggregator Thrasio is cutting workers and replacing its CEO (and only remaining co-founder), Carlos Cashman, according to a leaked memo reported on by Insider on May 2. The layoffs, which could impact up to 20% of Thrasio’s staff, are expected to impact the company’s brand operations, creative and marketing teams.
Weight-loss app Noom laid off 180 of its weight-loss coaches in late April and told staff at the time that more coach layoffs would follow, Insider reported. In total, the layoffs account for about 25% of Noom’s 2,000-person coaching staff, representing a strategy pivot to scheduled video-based coaching.
Just five months after launching its editorial arm, called Tudum, Netflix laid off at least 10 writers, and 25 people across Netflix's marketing department more broadly on April 28. The layoffs came less than a week after a troubling earnings report that pummeled Netflix’s stock price.
Retail brokerage Robinhood, which reported 3,800 full-time employees at the end of 2021, announced it would be cutting about 9% of its staff, CEO Vlad Tenev announced in a blog post on April 26. Tenev cited “duplicate roles and job functions” for the layoffs, following Robinhood's rapid expansion last year.
Troubled mortgage lending startup Better.com announced more layoffs on April 19, following roughly 900 firings in December and more in March. “As the mortgage environment in which we operate continues to indicate further declines ahead, we have to do more to ensure Better is appropriately positioned, financially and operationally,” Richard Benson-Armer, Better.com’s head of human resources, told staff.
About 20 of food publisher and home goods e-commerce website Food52's roughly 200 employees were laid off on April 6. The axed employees had worked on Food52's content team. A company spokesperson told Digiday the reductions are a move to "better support our commerce business and to better integrate the two companies we acquired last year."
With just weeks of runway left, one-click checkout startup Fast announced in early April that it would shut down. CEO and co-founder Domm Holland tweeted a statement: “After making great strides on our mission of making buying and selling frictionless for everyone, we have made the difficult decision to close our doors.”
Get in front of millions of visitors and job seekers.
- Showcase your company culture to a vast community of professionals
- Host your team on a free org chart to keep employees aligned
- Post jobs on our free job platform for high growth startups