Layoffs

Amazon layoffs begin, Ticketmaster can’t handle Taylor Swift, and much of Twitter HQ quits • ZebethMedia

By zebethcontrolPosted on November 19, 2022Posted in Layoffs, Media & Entertainment, media and entertainment, Social, Week in ReviewNo Comments

Hello again! Time for another edition of Week in Review, the newsletter where we recap the week’s most read ZebethMedia stories in one quick and easy-to-skim blast. Get it in your inbox every Saturday AM by signing up here. (There won’t be a newsletter next Saturday because I’ll be off being thankful/eating leftovers/being thankful for leftovers, but we’ll be back to our regularly scheduled programming the weekend after.) If you read last week’s edition, you’ll notice some echoes here: more layoffs, more FTX drama, and more absurdity at Elon’s Twitter. Let’s dive in! —Greg most read Mass resignations at Twitter: After laying off thousands of Twitter employees over the past few weeks, Elon presented something of an ultimatum to those remaining: commit to being “extremely hardcore” as “part of the new Twitter” or leave with three months severance…and, well, a lot of people took door number 2. It’s unclear at this point (even to Twitter, it seems) how many declined the ultimatum, but all indications are that it was hundreds/thousands. SBF DMs: For some reason the founder of FTX — the once massive crypto exchange that imploded last week — decided to have an impromptu interview with a Vox reporter by way of DM. Seemingly without any agreement that any of it was off the record, said DMs were, of course, quickly published. His biggest regret in all this? Weirdly, filing for bankruptcy. Evernote gets bought: Evernote was once something of an App Store darling — an early go-to example of design, quality, and company leadership. Then after a series of pricing/privacy/design changes pissed off the user base, it just sort of…faded away. This week the company was acquired by Italian app developer Bending Spoons, in what Kyle Wiggers calls “the end of an era.” Amazon layoffs: Rumors suggested layoffs were on the way at Amazon, with some estimates suggesting upward of 10,000 would be let go. This week the layoffs began, with CEO Andy Jassy writing in a memo that the layoffs will continue into next year. Ticketmaster face-plants: Tickets for Taylor Swift’s first tour in years went on presale this week, and Ticketmaster, the website that no one on earth is happy to use, couldn’t keep up with the Swifties. Things went so awry with the gated presale that the scheduled public sale was outright canceled. You know your site outage is bad when it relights the political fire to break up your company’s overwhelming dominance. audio roundup Podcasts! We’ve got them! People seem to like them! Or a lot of people are just downloading/subscribing for the sake of inflating our collective ego. That’s okay too. Here’s what’s up in TC podcasts lately: Live from our ZebethMedia Sessions: Crypto event during one of crypto’s wildest weeks in ages, the Chain Reaction crew “tore up the script” and talked all about Sam Bankman-Fried’s “surreal, absurd” DM conversation with Vox. What does a corporate comms team do? The Equity team sat down with a pair of deeply experienced comms people to learn how all that behind-the-scenes machinery works. ZebethMedia+ Two states received 80% of venture funds raised: “Through the third quarter of 2022, U.S. venture firms raised $150.9 billion across 593 funds,” writes Rebecca Szkutak. Where did it all go? Rebecca breaks down the stats. A look at Sateliot’s Series A deck: 90% of the planet has no cell connectivity. What if you need an IoT device to phone home from, say, the middle of the ocean? That’s the idea behind Sateliot, which raised an $11.4 million Series A earlier this year. The company shared the pitch deck it used to raise with our resident pitch expert Haje Jan Kamps, who explored “the good and the bad of this high-flying space deck.”

TAM takedown, green card layoffs, when to ignore investor advice • ZebethMedia

By zebethcontrolPosted on November 18, 2022Posted in EC roundup, Layoffs, Pitch Deck Teardown, Startups, tax laws, Total Addressable Market, Venture, venture capitalNo Comments

When the downturn began, many VCs urged founders to slash their marketing spending. On its face, that’s an effective way to extend runway while cutting costs. Several months later, we’ve since learned that cutting marketing budgets doesn’t make early-stage startups healthier, but it is a great way for VCs to reduce burn rates across their entire portfolio. As Rebecca Szkutak reported this week, SaaS startups that ignored this advice outperformed the ones that followed it. If someone offers you free business advice, it’s probably for their own benefit. In business, if someone’s offering you advice, it’s probably for their own benefit. Which is why I take investors at their word when they say most founders cannot properly assess their total addressable market (TAM). Most founders submit a slide with three concentric circles: TAM on the outside, SAM (serviceable addressable market) in the middle, and SOM (serviceable obtainable market) in the center. Full ZebethMedia+ articles are only available to membersUse discount code TCPLUSROUNDUP to save 20% off a one- or two-year subscription “When this slide appears, most investors chuckle (or weep),” writes Bill Reichert, partner and chief evangelist at Pegasus Tech Ventures. Few investors will wire funds based on how many billions you think you’ll make in year 8. Instead, founders must demonstrate that they have a directional plan and a keen understanding of prospective users. “How many customers will you acquire this year? Next year? The year after?” asks Reichert. And just as importantly, “How many can you convert? How will you reach them?” Don’t spend too much time calculating future revenue or reading Gartner studies for factoids that sound authoritative. Instead, build a bottom-up model that focuses on the size of the opportunity, not the market. “Show investors how you are going to build an ever-expanding cadre of delighted customers,” Reichert advises. “Don’t suggest that your focus is on acquiring market share in a large established market.” Have a great weekend, Walter ThompsonEditorial Manager, ZebethMedia+@yourprotagonist How to turn user data into your next pitch deck Investors might enjoy listening to a founder’s well-rehearsed story, but sharing the right customer data “can definitively power up a pitch deck,” says David Smith, VP of data and analytics at TheVentureCity. “Investors need to see that you’re not being blindsided by easy wins that can go up in smoke within weeks, but are using hard data to build a sustainable company that will endure, and thrive, with time.” SaaS startups that ignored VC advice to cut sales and marketing were better off this year Image Credits: Andriy Onufriyenko (opens in a new window) / Getty Images Many VCs advised founders to dial back their sales and marketing outlays to preserve runway this year. And, as it turns out, many VCs have been giving the wrong advice. According to data from Capchase, a fintech that offers startups non-dilutive capital, “companies that didn’t cut spending on sales and marketing were in a better financial and growth position now than those that did when the market started to dip in 2022,” reports Rebecca Szkutak. Of the 500 companies surveyed, bootstrapped firms showed the strongest growth, said Miguel Fernandez, Capchase’s co-founder and CEO. “What we have seen in this case, and what is most interesting, is that the best companies have actually cut every other cost except sales and marketing.” Dear Sophie: My co-founder’s a green card applicant who just got laid off. Now what? Image Credits: Bryce Durbin/ZebethMedia Dear Sophie, My co-founder and I were both laid off from Big Tech last week and it’s the kick we needed to go all-in on our startup. We’re first-time founders, but they need immigration sponsorship to maintain status with our startup. Do we look at an O-1A in the 60-day grace period? Thanks! — Newbie in Newark Pitch Deck Teardown: Sateliot’s $11.4M Series A deck Image Credits: Sateliot (opens in a new window) Cell phone coverage is built to serve people, which is why Sateliot is launching nanosatellites to provide IoT connectivity for ocean buoys and autonomous drones. The company shared its €10 million Series A deck with TC+, which includes all 18 slides: Cover Problem: “90% of the world has no cellular coverage” Team Solution: “To connect all NB-IOT devices from space under 5G standard” Value proposition: “Near real-time connectivity” Product: “Standard protocol” Why us: “Sateliot is the #1 satellite operator” Market size Competition Business model Traction: “MNOs engaged and technical integrations ongoing” Go-to-Market: “Early adopters program” Interstitial slide Benefit Progress NGO program Slogan Conclusion How much tax will you owe when you sell your company? Image Credits: PM Images (opens in a new window) / Getty Images Getting a startup off the ground is hard work, so asking founders to prepare for an acquisition may sound just as silly as telling them to practice their Academy Award speech in the bathroom mirror. Still: if you’re ready to launch a startup, you must also be prepared to sell one. In an explainer for TC+, Peyton Carr, managing director of Keystone Global Partners, offers a framework for calculating taxation upon an exit and lays out the differences between short-term capital gains and long-term capital gains rates. “As a founder, you’ll need to plan for your personal tax situation to optimize the opportunity set that is presented to you.”

Roku lays off 200 US employees, citing economic conditions • ZebethMedia

By zebethcontrolPosted on November 17, 2022Posted in Layoffs, Media & Entertainment, rokuNo Comments

Roku wrote in a new SEC filing that it plans to cut 200 jobs in the U.S. as it braces for economic headwinds. Thanks to the workforce reduction, the company expects to incur a non-recurring charge of between $28 to $31 million, mainly because of severance payments, employee benefits contributions, other related expenses, and notice pay “where applicable,” Roku said. The company added that it expects most of the restructuring charges to come in Q4 2022 and that the job cuts, including cash payments, will be “substantially complete” by the end of the first quarter of 2023. In trading before the bell, shares of Roku dropped nearly 3%. “Due to the current economic conditions in our industry, we have made the difficult decision to reduce Roku’s headcount expenses by a projected 5%, to slow down our [Operating Expenses] growth rate. This will affect approximately 200 employee positions in the U.S. Taking these actions now will allow us to focus our investments on key strategic priorities to drive future growth and enhance our leadership position,” Roku said in an official statement. The unfortunate news comes on the heels of Roku’s third-quarter results when it cautioned investors that it predicts an unsatisfactory fourth quarter as the estimated total net revenue is approximately $800 million or a 7.5% decline year over year. Many tech and media companies have had layoffs recently, including Warner Bros. Discovery, Disney, Paramount Global, Amazon, Snap, Spotify, Twitter and Meta. Amazon was the most recent company to make major cuts yesterday. Last week, Meta laid off 13% of its workforce, affecting 11,000 employees.

Amazon hardware head confirms layoffs in memo • ZebethMedia

By zebethcontrolPosted on November 16, 2022Posted in Amazon, dave limp, devices, Hardware, LayoffsNo Comments

Update: Spokesperson Kelly Nantel tells ZebethMedia, “As part of our annual operating planning review process, we always look at each of our businesses and what we believe we should change. As we’ve gone through this, given the current macro-economic environment (as well as several years of rapid hiring), some teams are making adjustments, which in some cases means certain roles are no longer necessary. We don’t take these decisions lightly, and we are working to support any employees who may be affected.” While Amazon has yet to confirm the size or scoop of its most recent round of layoffs, the company today posted the text of a letter from Senior Vice President of Devices & Services, Dave Limp, that sheds light on the situation. The note, which was initially sent to the company’s Devices and Services org, confirms a “consolidation” of teams within the division. “After a deep set of reviews, we recently decided to consolidate some teams and programs. One of the consequences of these decisions is that some roles will no longer be required,” Limp writes. “It pains me to have to deliver this news as we know we will lose talented Amazonians from the Devices & Services org as a result. I am incredibly proud of the team we have built and to see even one valued team member leave is never an outcome any of us want.” The memo is a confirmation of earlier reports that the company begun to inform employees yesterday. Amazon reportedly gave employees two months to find another role inside the company or accept severance. Limp adds that all impacted employees in that org were notified of the decision yesterday. “In cases where employees cannot find a new role within the company,” the executive writes, “we will support the transition with a package that includes a separation payment, transitional benefits, and external job placement support.” The moves follow a report earlier this week that puts the company-wide figure at 10,000 – amounting to roughly 3% of the overall corporate headcount. Devices were an easy target for corporate belt tightening, given reports that they’ve been losing $5 billion in annual revenue for Amazon. Human Resources, retail and the cloud gaming platform, Luna, are also said to be targets. “While I know this news is tough to digest,” Limp writes, “I do want to emphasize that the Devices & Services organization remains an important area of investment for Amazon, and we will continue to invent on behalf of our customers.”

Amazon begins layoffs as economic woes mount • ZebethMedia

By zebethcontrolPosted on November 16, 2022Posted in Amazon, Hardware, layoff, LayoffsNo Comments

This week, Amazon began the process of cutting jobs across the company. Managers have begun informing employees that they have two months to find another role inside the company or accept severance, according to reports. Numerous employees have acknowledged that they were impacted by the moves via services like LinkedIn. Other reports, meanwhile, cite frustrations among the workforce that the company has not sent any companywide notifications to acknowledge the size and scope of the cuts. We’ve reached out to Amazon for comment. The news follows weeks of rumors around accelerating belt tightening led by CEO Andy Jassy. Following reports that the company was eyeing its devices division in particular, word arrived earlier this week that the company plans to lay off 10,000 – comprising roughly 3% of its corporate workforce. The figure would mark the largest “workforce reduction” ever undertaken by the e-commerce and cloud computing giant in its nearly 30-year history. Retail and human resources are also said to be impacted, along with the company’s cloud gaming service, Luna. The cuts come less than two months after Google pulled the plug on its competing service, Stadia. Last week, a spokesperson for the company told ZebethMedia, We remain excited about the future of our larger businesses, as well as newer initiatives like Prime Video, Alexa, Grocery, Kuiper, Zoox, and Healthcare. Our senior leadership team regularly reviews our investment outlook and financial performance, including as part of our annual operating plan review, which occurs in the fall each year. As part of this year’s review, we’re of course taking into account the current macro-environment and considering opportunities to optimize costs. The statement acknowledged what’s amounted to major financial headwinds for everyone from the smallest early-stage startup to the largest multinational corporation. Amazon’s devices division, which includes Echo Products, Fire Tablets and its Alexa business, was a prime candidate for the chopping block, given that it’s reportedly been operating at a $5 billion a year revenue loss. It’s been a long tail strategy to broader acceptance of its smart assistant, Alexa, but Jassy appears to be taking an especially close look at those divisions that require a lot of runaway. The company’s last mile delivery robot Scout was among the recent casualties in a broader consolidation of its robotics division. Amazon’s far from the only major tech corporation to make big cuts as it braces for economic headwinds. Last week, Meta laid off 11,000 — around 13% of the company’s entire workforce. Under the guidance of new CEO Elon Musk, Twitter has also begun laying off what could amount to thousands, while Salesforce and Stripe have grappled with their own restructuring. In addition to broader macro concerns, Amazon’s revenue has also begun to return to Earth following pandemic-fueled surges in online shopping.

The power pendulum is swinging back to employers, isn’t it? • ZebethMedia

By zebethcontrolPosted on November 13, 2022Posted in Carta, EC Future of Work, Layoffs, meta, Startups, Twitter, VentureNo Comments

Tech layoffs may get worse before they get better — which means that the next few months will be full of companies trying to pivot their way to survival during this extended downturn. At least that’s what entrepreneur Nolan Church, who helped lead Carta’s 2020 layoffs as its chief people officer, thinks. He estimates that another 30,000 to 40,000 tech employees around the world will be laid off in Q1 2023 — a number that follows the more than 100,000 layoffs so far in 2022, according to layoffs.fyi data. Church chatted with me on Equity this past week about how his experience in the people operations world, at both Carta and DoorDash, has influenced his perspective on the best playbook for layoffs. He’s also building Continuum, a venture-backed startup that wants to match executive talent with startups for full-time and fractional opportunities. Unsurprisingly, his vision for a more flexible workforce fits well into the fact that tens of thousands of employees are now looking for work after just this week’s layoff stampede alone. My entire conversation with Church lives now wherever you find podcasts, so take a listen if you haven’t yet. Below, we extracted four key excerpts from the interview, from canned CEO statements to how he’s thinking about Twitter’s workforce reduction. The conversation Let’s talk about Twitter and ownership. We saw Jack Dorsey tweet a few days after the layoff that he ultimately owns responsibility for the fact that Twitter overhired. That delay in his response created a lot of attention, which made me wonder if the bar is getting higher when it comes to the way that employees expect CEOs to take responsibility for large-scale layoffs. Over the last 12 years, the pendulum between who has power between employees and employers has drastically swung toward employees. Now we’re in a moment where the pendulum is swinging back. If I predict where the next five to 10 years are going, the best talent is ultimately always going to be sought after. And I think employees now will continue to hold more power as they go forward. And they will remember how companies handle this moment. To your point around Jack, very candidly, I thought [his statement] was so weak. He waited to say anything; he sent out like two sentences. As somebody who has followed Jack and has been a fan of Jack for a very long time, I thought that this was the definition of weak leadership. And I would have expected more from him. And if I was an employee thinking about working for Jack in the future, I would think twice about it.

What goes up must come down • ZebethMedia

By zebethcontrolPosted on November 13, 2022Posted in Fintech, Layoffs, Startups, The InterchangeNo Comments

Welcome to The Interchange! If you received this in your inbox, thank you for signing up and your vote of confidence. If you’re reading this as a post on our site, sign up here so you can receive it directly in the future. Every week, I’ll take a look at the hottest fintech news of the previous week. This will include everything from funding rounds to trends to an analysis of a particular space to hot takes on a particular company or phenomenon. There’s a lot of fintech news out there and it’s my job to stay on top of it — and make sense of it — so you can stay in the know. — Mary Ann Like many of you, I’m sure, I was caught up last week watching the downfall of FTX unfold. It was a startling development in the world of crypto, and while I don’t cover the space directly, I couldn’t help but be fascinated by the goings-on — and not in a good way. For more on that debacle, check out our crypto-focused Chain Reaction podcast here and our general coverage here. I also couldn’t help watching the train wreck of Elon Musk taking over Twitter and Meta’s letting go of 11,000 people. But I digress. Last week, I ended the newsletter saying I hoped this week would come with more uplifting news. Unfortunately, that was not the case. Real estate fintech Redfin announced on November 9 that it was laying off 13% of its staff, or 862 people, in response to the continued slowing of the housing market. This followed Opendoor’s layoff of 550 people, or 18% of its workforce, the week before and Zillow’s cuts of 300 in late October. It also follows Redfin’s letting go of 470 employees in June. Notably, Redfin also said it is shuttering RedfinNow, its iBuying division. To that end, CEO Glenn Kelman wrote in an all-hands email: “One problem is that the share gains we could attribute to iBuying have become less certain as we rolled it out more broadly, especially now that our offers are so low…And the second problem is that iBuying is a staggering amount of money and risk for a now-uncertain benefit. We’ve tied up hundreds of millions of dollars in houses that you yourself wouldn’t want to own right now.” Kelman went on to say that the company’s June layoff was in response to Redfin’s expectation that it would sell fewer houses in 2022. The latest layoff “assumes the downturn will last at least through 2023.” Redfin’s, Zillow’s and Opendoor’s layoffs aren’t the only ones in the industry. Digital mortgage lender Better.com conducted yet another layoff or two in the past couple of weeks. One source told me 240 employees were let go on November 4. And San Francisco Business Times reporter Alex Barreira tweeted on November 11 that dozens more workers were let go, sharing colorful details of the company’s WARN notice, in which Better.com said it was not able to provide notification earlier as the separations were the result of a “dramatic deterioration” in the company’s business. When I reached out to the company about the layoffs, a spokesperson wrote via email: “Better is focused on making prudent decisions that account for current market dynamics.” Okay, back to Redfin. One thing that stood out most to me with regard to that company’s latest round of layoffs was Kelman’s candor as he addressed employees. In his email, he said: “To every departing employee who put your faith in Redfin, thank you. I’m sorry that we don’t have enough sales to keep paying you.” Interestingly, Kelman appears to be putting his own personal bets into real estate markets outside the U.S. In September, he co-invested in a Seattle startup called Far Homes that was founded by Redfin alums and is focused on “buying and selling real estate in foreign markets,” as reported by GeekWire. CEOs as of late have been particularly remorseful as their companies either deteriorate or lay off staff. Besides Kelman, other examples this week include Meta CEO Mark Zuckerberg admitting he overestimated how long the post-pandemic revenue surge would last, saying: “I got this wrong, and I take responsibility for that.” Also last week, FTX CEO and founder Sam Bankman-Fried admitted he “fucked up” and “should have done better” right before FTX declared bankruptcy and he stepped down from his role. This is after the crypto exchange was valued at $32 BILLION earlier this year. In Early August, Robinhood CEO Vlad Tenev took responsibility for the company’s letting go of 23% of its staff, saying: “This is on me.” Even Better.com CEO Vishal Garg admitted at one point that he had not been disciplined over the previous 18 months, telling employees: “We made $250 million last year, and you know what, we probably pissed away $200 million.” What does this tell us? CEOs are human, yes. Flawed humans just like the rest of us. In some cases, decisions such as over-hiring were made out of genuine (or foolish) belief that the people hired would be needed in years to come. In other cases, decisions were less honorable and more about furthering the executive’s own agenda. Unfortunately, either way, thousands of employees are paying the price. Image Credits: Kuzma / Getty Images Weekly News Months after acquiring gamified finance mobile app startup Long Game, Truist Financial Corporation has introduced the Truist Foundry, an innovation division that it says “will function as a startup within the bank.” The goal will be to deliver “game-changing projects” and serve the bank’s lines of business. A spokesperson told me via email that specifically, the Truist Foundry will work on “building software solutions that drive value and market leadership for the bank.” In other words, it looks like one of the United States’ largest banks is getting even more serious about its digital efforts. Instacart has tapped Dutch payments giant Adyen to serve as “an additional payments processing partner.” As part of the new partnership, the

Answers for H-1B workers who’ve been laid off (or think they might be) • ZebethMedia

By zebethcontrolPosted on November 11, 2022Posted in Dear Sophie, EC Future of Work, H-1B visa, immigration law, Layoffs, Sophie Alcorn, StartupsNo Comments

According to layoffs.fyi, more than 23,000 tech workers have been laid off so far this month. For comparison, the site tracked 12,463 layoffs in October. Facebook’s parent company Meta announced the first major job cuts in its history this week, eliminating 11,000 jobs. Like Twitter, Stripe, Brex, Lyft, Netflix and other tech firms based in the Bay Area, many of the employees impacted are immigrants on worker visas. An unexpected layoff introduces an element of chaos into anyone’s life, but when an H-1B worker loses their job, a loud clock starts clicking: unless they can land a new position or change their immigration status within 60 days, they are required to leave the country. And because tech companies at every size are enacting hiring freezes and planning more cuts, their ability to live and work in the U.S. is suddenly in question. Earlier today, I hosted a Q&A for foreign tech workers who have been laid off (or think they might be) with Silicon Valley-based immigration lawyer Sophie Alcorn. Alcorn, who writes “Dear Sophie,” a weekly advice column for ZebethMedia+, shared general information for visa workers and hiring managers who are looking for talent. If you’re a visa holder who’s been laid off, your first priority is to “find a lawyer and figure out your last day of employment, because that’s when you need to start counting the 60-day grace period,” said Alcorn. “You either get a new job, you leave, or you figure out some other way to legally stay in the United States, but you have to take some action within those 60 days.” Start looking now for new opportunities, she advised, as it will take a new employer time to submit paperwork to U.S. Citizenship and Immigration Services. “The best-case scenario would be that this new company files your new change of employer petition and USCIS receives the paperwork on or before the 59th day since your last day of employment,” said Alcorn. “It takes at least three weeks to prepare everything,” which means candidates and employers must move quickly as the days count down. “You probably need a signed offer around day 33,” she said. Based on her experience, Alcorn estimated that 15% of the people laid off from Bay Area startups are immigrants, 90% of which are H-1B holders. Below, you’ll find answers to several of the questions we received [edited for space and clarity]. I was laid off while I was abroad, but my lawyer advised me to travel back on ESTA, which I did. Do the 60-day grace period still apply? Sophie Alcorn: If you’re in the United States on ESTA after being laid off while abroad, you’re not in H-1B status anymore. You need to leave the country to get a new H-1B and try to come back in and start working. You don’t have the 60-day grace period anymore; you’ve abandoned it. The only thing you can do to change or extend your status if you’re in the United States on the Visa Waiver Program for 90 days on ESTA is get married to a U.S. citizen and have them sponsor you for a green card. It needs to be a real, good-faith marriage. You have to intend to share a life together, you have to demonstrate that your families know each other, that you do romantic comedy things together and have the photos to prove it. And the government’s going to check in two years to see if you’re still married. I am currently on an OPT and have an H-1B approved, but not activated. Can I change employers without going through the lottery right away? Or would my H-1B need to be activated first? You can actually change employers without [doing so]. When you’re interviewing for jobs, you need to make it very clear to the HR person that you think you are eligible for an H-1B change of employer, and you really need their immigration lawyers to take a close look, because essentially, what you will need is a change of status from F-1 or OPT to H-1B within the United States, as well as a change of employer.

SoundHound, the voice AI platform, lays off 10% of staff citing ‘challenging market conditions’ • ZebethMedia

By zebethcontrolPosted on November 10, 2022Posted in Layoffs, Robotics & AI, SoundHoundNo Comments

SoundHound — maker of the voice AI technology used by Mercedes-Benz, Deutsche Telecom, Snap and Mastercard and more — has laid off about 10% of its workforce amid ongoing economic turmoil across global markets. The Santa Clara-headquartered company — which went public via a SPAC in April of this year — announced the decision to its employees on Wednesday. Alongside that, it also imposed salary cuts for some of those not laid off. The company did not specify the details of the salary cuts, nor how many were affected. “Yesterday, we announced to our SoundHounders that we are taking actions to streamline our company, including an approximate 10% reduction in workforce. We don’t take this lightly, but in the face of challenging market conditions, we must channel our investments into the areas that continue to drive growth and allow us to best serve our customers. We’re extremely grateful to the departing colleagues that have contributed to our success as a leading voice AI platform,” said Fiona J McEvoy, a director of corporate communications at SoundHound, in a statement emailed to ZebethMedia. SoundHound has a total headcount of 450 employees — meaning that the layoff has impacted around 45 people. The company will likely share more details during its Q3 earnings call later today. Founded in 2005, SoundHound offers its voice AI platform in 25 languages. It powers voice-enabled experiences in a number of the cars provided by Hyundai, Mercedes-Benz and Honda. Earlier this month, the company also tied up with Samsung’s Harman International to offer fully OEM-owned and branded in-vehicle voice experience to several vehicles. Alongside offering its standalone platform to companies, SoundHound has two mobile apps, namely SoundHound Music that works similar to Apple’s Shazam and lets users discover music playing around them and Hound that offers voice-based search and assistance. In November last year, SoundHound announced it would go public via a SPAC transaction with blank check company Archimedes Tech SPAC Partners at a nearly $2.1 billion valuation. It was over 5x what Apple paid for its competitor Shazam, a $400 million announced in December 2017 and closed in September 2018. But its fortunes as a public company have been mixed. In its last quarterly results for the second quarter that ended on June 30, SoundHound reported a 26% year-on-year revenue drop to $6.2 million, while Q2 net loss spiked to nearly $31 million, compared to $15 million in the same quarter a year before. And its market cap, like that of many tech companies at the moment, is not doing very well. It’s currently trading at around $2/share with a market cap of $406 million. SoundHound has become another tech company to take the layoff route during this economic slowdown. In addition to recent layoffs announced by Facebook owner Meta and Twitter, others including Netflix, Salesforce, Spotify and Tencent and many others have cut collectively tens of thousands of jobs in the last several months. Indian startups such as Byju’s, Ola and Unacademy have also laid off hundreds of employees to reduce their operating expenses amid dip in funding and investments.

Gaming company Kabam lays off 7% of its workforce to better align with goals • ZebethMedia

By zebethcontrolPosted on November 9, 2022Posted in Gaming, Kabam, Layoffs, StartupsNo Comments

Kabam, the gaming company that has developed mobile games in partnership with entertainment brands including Disney, Marvel and Universal, has laid off about 7% — around 35 people — of its workforce, ZebethMedia has learned from sources and confirmed with the company over email. The Vancouver-based company informed the affected employees about the move earlier this week, a person familiar with the development said. “As we at Kabam reviewed our strategic priorities, we made the decision to adjust our resourcing structure in alignment with our goals. This means that while we will continue to hire in key areas in the year ahead, unfortunately, we are reducing our workforce by approximately 7%. For those we are parting ways with, we are grateful to [sic] their contributions to our success, and are supporting them through this challenging transition,” a Kabam spokesperson said in a statement emailed to ZebethMedia. The company has a headcount of over 500 employees. Kabam has a catalog of mobile games generating hundreds of millions of downloads in total, including Marvel Contest of Champions, Disney Mirrorverse, Shop Titans, Transformers: Forged to Fight, Mini Guns, Fast & Furious 6: The Game, Fast & Furious: Legacy and Blastron. The company also has studios and offices in Montreal, San Francisco, Charlottetown, Austin and Los Angeles — alongside its headquarters in Vancouver. Founded in 2006, the gaming company ran as a startup until 2016 when it was acquired by South Korea’s Netmarble Games for a reported $700 million to $800 million. In March this year, Netmarble’s North American operations merged with Kabam. It aimed to bring many Netmarble game titles to western markets. Kabam is one of many companies in the tech world that have cut its workforce during this economic slowdown. In the last few days, the impact of the ongoing financial crunch was largely seen through massive layoffs announced by Twitter and Meta. Companies including Netflix, Spotify and Tencent also let some of their staff go. Similarly, Indian startups such as Unacademy, Byju’s and Ola have also laid off hundreds and thousands of employees to reduce the burden of limited funding and investments.