RALEIGH – It’s not just Twitter workers who will be impacted by layoffs, as more than 3,700 layoffs have been announced by tech startups already in November, according to Layoffs.FYI.
That includes 1,000 layoffs at Stripe, the digital payments company valued at $95 billion following the firm’s last fundraising round. The firm will downside the company by about 14% and cut workers’ jobs due to what CEO Patrick Collison said in an email to employees was a shifting world.
“We think that 2022 represents the beginning of a different economic climate,” the letter wrote, going on to say that the company over-hired for the current climate and noting that recent earnings reports from publicly-traded tech companies like Meta and Google as well as recent decisions by the Federal Reserve were indicators considered by the founders of the company in determining to make layoffs at this time.
Stripe wasn’t even the only financial technology startup to announce layoffs this week, as Chime announced it would cut 12% of its workforce, or about 160 workers who would be laid off.
The company, which provides mobile and web-based banking services, told CNBC that even though the firm is cutting jobs, they’ll still be hiring some key positions and that the company does “remain very well capitalized.” The company has previously been valued at $25 billion following a fundraising round last year.
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Opendoor layoffs
And as housing markets slow nationwide due to increasing mortgage interest rates—which are hovering near 7% on average for a 30-year fixed rate loan, according to Freddie Mac—layoffs are hitting real estate technology companies, as well.
Notably, that includes Opendoor, the instant buying company that has extensive operations in the Triangle and in other North Carolina housing markets.
Opendoor co-founder and CEO Eric Wu released a letter on Wednesday that stated the company is in the midst of “navigating one of the most challenging real estate markets in 40 years and need to adjust our business.”
The company had previously removed 830 third party resources from their operations, and Wednesday’s news meant that 550 Opendoor employees will now be packing their bags and leaving the company.
The latest
Earlier in the week, ridesharing company Lyft also announced layoffs, and Amazon announced it would pause hiring for its corporate roles. WRAL TechWire tracks layoffs each week in the WRAL TechWire Layoff Watch, which found this week that between January 1 and October 31, 724 tech startups have cut at least 95,212 jobs, according to data obtained from Layoffs.FYI.
And, just this week, since Monday, 27 firms have announced more than 4,100 layoffs, according to data from Layoffs.FYI.
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