As the pandemic reverberates through almost every industry imaginable, tech startups are also feeling the pain.
Since mid-March, countless startups and unicorns have undergone layoffs.
Today’s infographic pulls data from Layoffs.fyi, and navigates the cascading layoffs across 30 of the most recognizable startups in America. Each of the companies have slashed over 250 employees between March 11 and May 26, 2020—capturing a snapshot of the continuing fallout of COVID-19.
Silicon Valley Takes a Hit
Unsurprisingly, many of the hardest hit startups are related to the travel and mobility industry.
Closing 45 offices, Uber has laid off 6,700 employees since mid-March. Uber CEO Dara Khosrowshahi, who was granted a $45M earnings package in 2018, announced he will also waive his $1M base salary for the remainder of the year.
| Company | # Layoffs | % of Employees | Industry |
|---|---|---|---|
| Uber | 6,700 | 25% | Transportation |
| Lyft | 982 | 17% | Transportation |
| Bird | 406 | 30% | Transportation |
| Airbnb | 1,900 | 25% | Travel |
| TripAdvisor | 900 | 25% | Travel |
| Sonder | 400 | 33% | Travel |
| TripActions | 300 | 25% | Travel |
| Magic Leap | 1,000 | 50% | Consumer |
| Yelp | 1,000 | 17% | Consumer |
| Juul | 900 | 30% | Consumer |
| Groupon | 2,800 | 44% | Retail |
| Deliv | 669 | 100% | Retail |
| B8ta | 250 | 50% | Retail |
| Toast | 1,300 | 50% | Food |
| ezCater | 400 | 44% | Food |
| Flywheel Sports | 784 | 98% | Fitness |
| MindBody | 700 | 35% | Fitness |
| Opendoor | 600 | 35% | Real Estate |
| WeWork | 550 | N/A | Real Estate |
| Compass | 375 | 15% | Real Estate |
| ZipRecruiter | 400 | 39% | Recruiting |
| Glassdoor | 300 | 30% | Recruiting |
| Cvent | 400 | 10% | Marketing |
| Sojern | 300 | 50% | Marketing |
| KeepTruckin | 349 | 18% | Logistics |
| Samsara | 300 | 18% | Logistics |
| Eventbrite | 500 | 45% | Entertainment |
| Lending Club | 460 | 30% | Finance |
| Sage Therapeutics | 340 | 53% | Healthcare |
| Automation Anywhere | 260 | 10% | Other |
*Layoffs reported between March 11-May 26, 2020
Meanwhile, as room bookings dropped by over 40% across several countries, Airbnb laid off a quarter of its workforce. The tech darling is anticipating a $2.4B revenue shortfall in 2020.
Like many other big names—including Lyft, Uber, and WeWork—Airbnb is struggling to achieve profitability. In the first nine months of 2019, it lost $322M at the height of the market cycle.
Until 2021, gig-economy revenues are projected to drop by at least 30%.
International Startups Struggling
Startups in the U.S. aren’t the only ones scrambling to conserve cash and cut costs.
Brazil-based unicorn Stone has let go of 20% of its workforce. The rapidly growing digital payments company includes Warren Buffett as a major stakeholder, holding an 8% share as of March 2020.
At the same time, India-based ride-hailing Ola has witnessed revenue declines of 95% since mid-March. It laid off 1,400 employees as bookings drastically declined.
