startups Majority of Startups Face Severe Cash Shortages Amid Pandemic Layoffs A global survey reveals that nearly three-quarters of startups have reduced staff due to COVID-19, while 65% possess less than six months of operating cash. Venture capital funding drops significantly, leaving most young companies in a desperate fight for survival.
lyft Lyft Cuts Nearly 1,000 Jobs and Furloughs Hundreds Amid Pandemic Lyft reduces its workforce by 17 percent, laying off 982 employees and furloughing 288 more as the COVID-19 pandemic devastates the ride-hailing industry. The company also implements widespread salary cuts for executives and staff to manage the financial fallout.
magic leap Magic Leap Halves Workforce, Abandons Consumer AR Market Augmented reality startup Magic Leap lays off approximately 1,000 employees and abandons its consumer focus to concentrate entirely on enterprise customers amid the COVID-19 pandemic.
apps App Industry Navigates Pandemic With New Store Rules and Layoffs The mobile app industry continues to boom despite the pandemic, but companies like VSCO are making deep cuts to survive. Meanwhile, Instagram and TikTok roll out new features to support businesses and protect younger users.
airbnb Airbnb Cuts Contractors and Cancels Summer Internships Amid Pandemic Airbnb ends contracts for contingent workers and delays undergraduate hiring as the COVID-19 crisis disrupts the tech industry. Affected interns now face a sudden, highly competitive search for replacement opportunities.
gopro GoPro Slashes 20% of Workforce, Pivots to Direct-to-Consumer Sales GoPro lays off over 200 employees and cuts office space to save $100 million in 2020, largely driven by pandemic-related retail disruptions. The action camera maker is also shifting its primary sales strategy away from physical retail stores to focus on direct online sales.
health tech Health Tech Startups Face Unexpected Layoffs Amid Coronavirus Economic Fallout Despite high demand for digital health tools during the pandemic, health tech startups are furloughing and laying off workers due to the broader financial meltdown. Virta Health confirms it is cutting staff to weather the economic uncertainty caused by Covid-19.
bird Scooter Startup Bird Cuts 30% of Staff to Survive Pandemic Bird lays off 406 employees as the COVID-19 crisis forces the scooter company to pause global operations and reduce its cash burn. The startup joins a growing list of Silicon Valley companies making deep cuts to extend their financial runways.
compass Softbank-Backed Compass Lays Off 15% of Staff Amid Real Estate Downturn Real estate startup Compass cuts 15% of its workforce and scales back its concierge business as the coronavirus pandemic causes a massive drop in home showings and revenue.
atrium Justin Kan's Atrium Shuts Down After Failing to Disrupt Legal Industry Atrium closes its doors and lays off over 100 employees after struggling to deliver better efficiency than traditional law firms. The startup returns remaining funds to investors while its separate law firm continues operations.
nio Electric Vehicle Startup Nio Cuts 141 Jobs at San Jose Headquarters Nio lays off 141 employees at its North American headquarters as part of ongoing cost-cutting measures following a difficult year of losses and vehicle recalls.
magic leap Magic Leap Sells Only 6,000 AR Headsets Amid Financial Struggles Magic Leap reportedly sells just 6,000 units of its $2,300 augmented reality headset in six months, falling far short of initial projections. The disappointing sales force the startup to implement cost-cutting measures and lay off dozens of workers.
lyft Lyft Pulls Scooters From Six Cities Amid Push for Better Unit Economics Lyft is removing its scooters from six U.S. markets and laying off 20 employees to focus on densely populated cities where ridership is higher.
uber Uber Posts $1 Billion Quarterly Loss Despite Revenue Gains Uber reports $3.8 billion in revenue but loses over $1 billion in the third quarter as its Eats and freight divisions bleed cash.
wework WeWork Subsidiary Meetup Lays Off 25% of Staff Amid Cost-Cutting Push Meetup, the event organizing platform owned by WeWork, lays off a quarter of its workforce as part of a major restructuring effort. The cuts primarily affect the engineering department and follow a massive financial bailout from SoftBank.