34 employees have been laid off from Loom, which is a video messaging service. People operations and product operations were impacted.
The company provided a statement from founder and CEO Joe Thomas.
We’ve had to make the extremely difficult decision to move forward with a reduction in force across our team. Each person impacted was not only a talented employee, but also a valued individual and teammate. We’re committed to supporting these employees through this transition both in their offered severance as well as career support. We’re confident in the path ahead for Loom. This decision was ultimately made to ensure we’re able to move forward sustainably, especially in light of increased economic uncertainty, and continue to deliver on our vision for years to come.
In three years, the company hit 1.8 million users across 50,000 businesses. According to its website, Loom has 14 million users across 200,000 companies.
Tech layoffs don’t happen to companies, they happen to people
The product was positioned to help remote workers find better ways to connect with colleagues in a virtual-first world, and help hybrid workforces find a lightweight way to skip some meetings, because of the surge of people working from home in response to the COVID-19 pandemic. Similar to Hopin, the startup conducted layoffs to help it build in a sustainable way.
The company has attracted $203 million in venture capital funding. The company was valued at over $1 billion in the same round, making it the first one to hit the status of unicorns. Kleiner Perkins is one of the investors in the company.
Since landing the new financing and valuation a year ago, Loom has had to scale back its workforce, joining a group of other unicorns that have had to do the same.
A year ago, visual creator tools startup Picsart raised $130 million from SoftBank and had a valuation of over $1 billion. 90 people were laid off by the company last month. Last year, Cameo became a unicorn and recently conducted layoffs that impacted 87 people.
Tech layoffs top 15K in a brutal May
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