A proptech smart lock company that raised $152 million in private capital before going public last year is conducting another round of layoffs. The startup cut 30 people, or 6 percent of its total staff, earlier this month, according to an email.
According to a late Friday press release, Latch has cut a total of 130 people, or 28% of its full-time employee base. Chris Lee is the chief revenue officer and Adam Sold is the VP of sales.
The first round of layoffs were conducted to ensure that Latch is on a path to sustainable growth, according to an email seen by TechCrunch. This week's layoffs have not yet been heard about by Latch.
Two weeks of layoffs is rare and indicative of frantic behind-the-scenes operations. It feels like back-to-back knee jerks come after weeks of tension. After taking the company public through a reverse-merger, the CFO left less than a year later. At the time, it was explained that Latch wasn't immune.
The opening price of Latch was $11 per share. Since its debut in June of 2021, it has lost 80% of its value. A company can be forced to quickly cut costs in order to show that it is able to get to a leaner state if it has an extreme drop in value.
According to a press release, Latch expects to achieve around 40 million annual run rate cost savings once the workforce reduction is complete. The company expects to spend up to $6 million on cash restructuring in the second quarter of 2022.
Over the past month, both public and private tech companies have announced mass layoffs. Section4 employees have been impacted by the workforce reductions. Some big companies are instituting hiring freezes or changing their strategy.
A third straight week of tech layoffs in the books
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