ClickUp, a renowned startup that offers a workforce productivity platform, recently announced a reduction in its workforce by 10%.
With an employee count of approximately 900 individuals, this decision translates to around 90 affected employees. The company aims to improve its operational efficiency and position itself favorably for a public listing amidst the current market slowdown.
You May Also Like:Â Niantic Lays Off 230 Employees And Cancels NBA And Marvel Games
According to sources who confirmed to SurgeZirc SA, the San Diego-based startup informed some of the impacted employees about the layoffs on Thursday, a disclosure later verified via email.
Over the next few months, other affected employees will undergo a transition period before exiting the organization. The layoff primarily affects personnel from the software engineering division, as well as customer service and support teams.
Zeb Evans, the CEO and founder of ClickUp, stated, “We have made the challenging decision to reduce the size of our workforce, primarily to relocate certain support roles to regions with lower costs. This realignment allows us to become an IPO-ready company, excelling in both efficiency and growth.”
To support the affected employees, ClickUp is providing a severance package lasting 12 weeks, six months of insurance coverage, and six months of access to the startup’s employee assistance program.
Furthermore, the company has allowed laid-off employees to retain their laptops and equipment, and it has extended support to individuals with visa requirements.
In 2022, ClickUp executed a 7% reduction in staff as part of a restructuring effort. A ClickUp spokesperson at the time described it as a “one-time decision” aimed at maintaining profitability.
ClickUp’s client base includes prominent companies such as Booking.com, IBM, Spotify, T-Mobile, and Netflix.
The platform offers a comprehensive suite of tools for document collaboration, project management, spreadsheets, and chat. Recently, the startup introduced its AI-based assistance solution, following the trend set by major tech companies.
Established in 2017 by Zeb Evans and Alex Yurkowski, ClickUp secured $400 million in a Series C funding round led by Andreessen Horowitz and Tiger Global, resulting in a post-money valuation of $4 billion.
You May Also Like:Â Valve Addresses Claims Of Banning AI-Generated Games From Steam
Notable investors in the startup include Lightspeed Venture Partners, Meritech Capital Partners, Craft Ventures, and Georgian Partners.
“We deeply appreciate the contributions of the impacted employees and remain committed to supporting them throughout this transitional period. Concurrently, we will continue to hire individuals aligned with our mission, particularly those focused on product and revenue,” emphasized the CEO.
