Video collaboration startup Loom declares layoffs
The asynchronous video software program agency, valued at $1.5bn, has reportedly lower 34 workers, as tech startups react to wider financial uncertainty.
Lee Charlie / Shutterstock
Loom, a collaboration startup that sells software program for asynchronous video communication, has laid off workers, citing price reductions amid financial headwinds.
According to sources cited by TechCrunch, the corporate laid off 34 workers, which quantities to 14% of its workforce. Loom confirmed to Computerworld the variety of workers laid off and offered the next assertion from CEO Joe Thomas:
We’ve needed to make the extraordinarily troublesome choice to maneuver ahead with a discount in power throughout our workforce. Each individual impacted was not solely a proficient worker, but additionally a valued particular person and teammate. We’re dedicated to supporting these workers via this transition each of their provided severance in addition to profession assist. We’re assured within the path forward for Loom. This choice was in the end made to make sure we’re in a position to transfer ahead sustainably, particularly in mild of elevated financial uncertainty, and proceed to ship on our imaginative and prescient for years to return.
Loom raised $130 million in Series C funding led by Andreessen Horowitz final 12 months, bringing complete funding to $203 million, and a valuation of $1.5 billion. The firm, co-founded by Vinay Hiremath, Shahed Khan, and Joe Thomas in 2015, has 12 million customers throughout 200,000 corporations.
Loom introduced a considerable replace to its platform earlier this 12 months with the addition of a collaborative “HQ” that features a customized residence display screen, trending video suggestions, and the flexibility to observe colleagues. Commenting on the time, Angela Ashenden, principal analyst at CCS Insight, mentioned that the replace sees Loom “maturing into a fully fledged collaboration application for teams.”
“It’s a big upgrade for the tool, and one which signposts the company’s ambitions in the enterprise collaboration space,” mentioned Ashenden.
While a hiring slowdown has been evident amongst massive tech corporations in current months — reportedly together with Salesforce, Microsoft, Meta, Twitter, and Uber — the image has been bleaker for startups within the sector.
Collaborative whiteboard software program supplier Mural, valued at over $2 billion, is claimed to have lower an unspecified variety of workers in May, whereas digital occasions platform Hopin reportedly made 138 employees redundant earlier this 12 months. More than 120 tech corporations have laid off staffers because the starting of the 12 months, in keeping with tracker website Layoffs.fyi.
A widely-shared memo from startup accelerator Y Combinator final month warned founders to “prepare for the worst” amid financial considerations.
“If your plan is to raise money in the next 6-12 months, you might be raising at the peak of the downturn. Remember that your chances of success are extremely low even if your company is doing well. We recommend you change your plan,” the memo reads.