Video Messaging Startup Loom Cuts 14% of Staff Amid Economic Uncertainty
Loom lays off 34 employees across product and people operations as it aims for sustainable growth. The Andreessen Horowitz-backed unicorn currently serves 14 million users across 200,000 companies.
Loom lays off 34 employees, accounting for 14% of its total workforce, as the enterprise video messaging company navigates increased economic uncertainty. The affected employees work across product and people operations departments. CEO Joe Thomas states that the reduction in force aims to ensure the company moves forward sustainably while continuing to deliver on its long-term vision.
The startup experiences significant growth after its 2015 founding, expanding from 1.8 million users to a current base of 14 million users across 200,000 companies. Major clients include Netflix, Atlassian, HubSpot, and Juniper Networks. Like other tech companies such as Hopin, Loom benefits greatly from the shift to remote work during the COVID-19 pandemic by providing lightweight video tools for virtual teams.
Despite raising $203 million in known venture capital and achieving a $1.53 billion unicorn valuation through a Series C led by Andreessen Horowitz, Loom now joins a growing list of well-funded startups scaling back their workforces. Investors in the company include prominent firms like Kleiner Perkins, Sequoia, Coatue, and General Catalyst. The layoffs occur over a year after the company secures its coveted unicorn status.