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A third straight week of tech layoffs on the books – TechCrunch

You thought that the market was bad for venture capitalistsbut what about the actual workers behind the tech companies they backed?

Reluctantly, we’re writing a roundup of tech layoffs for the third week in a row, as once again there have been reductions across stages and sectors. Over the past month, public and private tech companies have announced massive layoffs across all sectors. Employees at Section4, Carvana, DataRobot, Mural, Robinhood, On Deck, Thrasio, MainStreet and Netflix have been affected by the downsizing. Some big companies are implementing hiring freezes, like Twitter and Meta, or announcing a change in strategy, like Uber.

As has been our mantra during our reporting on the layoffs sweeping the tech industry: layoffs don’t happen to companies, they happen to people. Especially for US-based tech employees, the layoffs don’t just mean a loss of income — they mean a medically dangerous loss of health care.

Let’s see which companies announced cuts this week.

After layoffs hit Netflix’s content arm Tudum a few weeks ago, another 150 mostly US-based employees were laid off, along with 70 other employees in the animation division.

A Netflix representative wrote in an emailed statement, “As we explained on earnings, our slowing revenue growth means we also need to slow our cost growth as a business. ” Netflix posted revenue of $7.87 billion for the first quarter of 2022 and a significant loss of 200,000 subscribers.

Contractors were also affected by these layoffs, but the number of workers affected in this designation is unclear. TechCrunch asked Netflix about reports that staff running various social channels like Strong Black Lead, Golden, Most and Con Todo have been let go, but Netflix said the company has decided not to renew contracts with some agencies that it used to recruit subcontractors. Still, it’s not nice to see queer people and people of color losing their jobs, which has helped Netflix cater to those audiences.

Picsart’s unicorn status didn’t save it

Less than a year ago, Picsart raised $130 million from SoftBank, putting the visual creation tools startup in unicorn territory with a valuation exceeding $1 billion. A leaner, hipper version of Adobe, things appear to have slowed down for Picsart, which laid off 8% of its staff this week, affecting 90 people. Other SoftBank-backed companies like Cameo, which also became a unicorn last year, have just made layoffs. The last time Alex Wilhelm covered Picsart, he noted that the company needed to go public – that still hasn’t happened, which may be a clue as to what’s going on in the company to precipitate such cuts .

Cars24, a used car marketplace last valued at $3.3 billion by its venture capitalists, cut 600 jobs – or 6% of its entire workforce – this week. The Series G startup had just raised a $400 million funding round, making the cut more related to the runway expansion than a lack of ability to pay the bills.

As our own Manish Singh reports, Cars24 is one of many Indian startups that have laid off people over the past few weeks. Employees from Vedantu, Unacademy, Meesho, OkCredit, Trell, Furlenco and Lido have also cut several positions, he says.

Marketplace startups, such as Cars24, feel particularly vulnerable during downturns. Consumer spending patterns can become extremely volatile, meaning demand can decrease while supply remains constant or even increases. Balancing the two sides is the greatest art for any marketplace startup, but predicting revenue stability becomes especially difficult when everyone has taken a break.

Skillz cuts esports biz team

Esports company Skillz laid off 70 employees, or about 10% of the team, earlier this week, the company confirmed to TechCrunch. No frame was affected by the cuts.

“We have decided to reorganize our resources and investments to increase our profitable growth and further realize our vision of building the competitive layer of the Internet,” the company said in an emailed statement. “This realignment has resulted in changes to some of our programs and, as a result, our team members, as we prioritize our resource levels to continue to deliver a great gaming experience and enable more game developers to bring to their creations.

The company’s statement is ironic; to better support his external community, he cuts himself off from his internal community. The company says it plans to continue hiring in certain areas of the business, but did not mention which ones.

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