Loom, a collaborative startup that sells software for asynchronous video communications, has laid off employees, citing cost reductions within the economic headwind.
This information has been known quoting sources TechCrunch, The company has laid off 34 employees, which is 14% of its workforce. The loom has confirmed ComputerWorld Staff cuts and CEO Joe Thomas made the following statement:
We have had to make extremely difficult decisions to move forward by losing strength across our team. Everyone affected was not only a talented employee, but also a valuable person and teammate. We are committed to supporting these employees through this transition, both in terms of their paid separation as well as career support. We are confident on the way forward for the loom. The decision was made in the end to ensure that we can move forward sustainably, especially in light of the growing economic uncertainty, and continue to provide our vision for the next few years.
Loom raised $ 130 million from the Series C fund, led by Andresen Horowitz, last year, bringing the total funding to $ 203 million, and valuing 1.5 billion. The company, co-founded in 2015 by Binoy Hiremath, Shahed Khan and Joe Thomas, has 12 million users across 200,000 companies.
Loom announced a significant update to its platform earlier this year, adding a partner “HQ” that includes a personalized home screen, the ability to follow trending video recommendations and peers. Commenting at the time, Angela Ashenden, chief analyst at CCS Insight, said the update saw Loom become “a fully developed collaboration application for parties.”
“This is a major upgrade for the tool, and one that signals the company’s ambition in the enterprise collaboration space,” Ashenden said.
However, the recent downturn in hiring among major tech companies – including Salesforce, Microsoft, Meta, Twitter and Uber – has worsened the picture for startups in the sector.
Collaborative whiteboard software provider Mural, valued at more than $ 2 billion, reportedly cut an indefinite number of employees in May, while the virtual event platform Hopin reportedly laid off 138 employees earlier this year. According to tracker site Layoffs.fyi, more than 120 technology companies have laid off employees since the beginning of the year.
Last month, a widely shared memo from startup Accelerator Y Combinator warned founders to be “ready for the worst” amid economic concerns.
“If your plan is to raise money in the next 6-12 months, you can rise to the top of the recession. Remember that your chances of success are extremely low even though your company is doing well. We suggest you change your plan, “the memo said.
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