A16z-powered loom cuts employees 14%, a year after becoming a unicorn TechCrunch

Loom, an enterprise collaborative video messaging service, laid off 34 employees, or 14% of all employees, the sources said. Employees across the entire product and people operations are affected.

The venture-backed company confirmed the layoffs and the number of people affected, and released the following statement from founder and CEO Joe Thomas:

We had to make an extremely difficult decision to continue with the team reduction. Each person affected is not only a talented employee, but also a valuable individual and teammate. We are committed to supporting these employees in this transition both in terms of their severance and career support. We believe in Loom’s way forward. This decision is ultimately taken to ensure we can move forward in a sustainable manner, especially amid growing economic uncertainty, and continue to deliver on our vision for many years to come.

The company was founded by Thomas and Vinay Hiremath in 2015, reaching 1.8 million users across 50,000 businesses just three years later. According to its website, Loom currently has 14 million users across 200,000 companies — including Netflix, Atlassian, HubSpot, and Juniper Networks.

Similar to Hopin, Loom benefits from an increase in people working from home in response to the COVID-19 pandemic; the product is positioned to help telecommuters find better ways to connect with co-workers in the first virtual world, and to help hybrid workforces find lightweight ways to skip some calls. meeting. Afterward, again similar to Hopin, The startup has been conducting layoffs to help it build what it describes as a more sustainable way into the future.

That growth has attracted $203 million in known venture capital, with the company most recently announcing a Series C led by Andreessen Horowitz. The same round valued the company at $1.53 billion, making it unicorn status for the first time. Kleiner Perkins, Sequoia, Coatue and General Catalyst are also investors in the company.

More than a year has passed since the startup achieved new financing and valuation, and according to today’s news, Loom joins a club of unicorns that have had to downsize after reaching achieve a desirable milestone.

Less than a year ago, image creation tool startup Picsart raised $130 million from SoftBank, reaching a valuation of more than $1 billion. Company lay off 8% of employees last month, affecting 90 people. CameoThe company, which also became a unicorn last year, also recently conducted layoffs that affected 87 people.

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