Loom, SF-based video messaging unicorn, is making layoffs again

Loom, a video messenger technology startup, made its second round of layoffs this year.

The company has its registered office at San Francisco. A spokesperson for Loom confirmed to SFGATE that 23 of its 219 staff – just over 10% – were laid off on Wednesday in this latest round of pink slips. Although the spokesperson did not specify which departments were affected, a statement from Loom CEO Joe Thomas suggests the layoffs affected “the business side” of the company.

“We had to make the difficult decision to move forward with a reorganization on the sales side of our business, which involved saying goodbye to 23 team members. Everyone we said goodbye to was a talented contributor and valued teammate,” Thomas said in a statement to SFGATE. “We are a growing company and we believe more strongly than ever in our vision.”

This round of layoffs follows layoffs in June, when 34 employees were made redundant. (Note the similarities between Thomas’ statement to SFGATE and the one Computerworld received in June when the publication reported on his initial layoffs in 2022.)

Loom received his unicorn status in 2021 when he received $130 million in Series C fundingwith a $1.53 billion valuation. In a press release published in November 2021the company boasted that it intended to build offices in New York and San Francisco.

The company said it had 14 million users across 200,000 companies in the same version.

The terminated employees, the company spokesperson said, will receive “severance pay and extended COBRA coverage,” but declined to provide specific details.

The technology industry has been hit hard by broader economic headwinds, with investors retreating and even the biggest companies forced to tighten their belts. But companies offering remote work-oriented services, which have flourished during the COVID-19 pandemic, are particularly feeling the effects.

During Dreamforce, Selling power CEO Marc Benioff noted at a press conference that there is an “excess that needs to be addressed” industry-wide.

“The restructuring of our go-to-market teams was necessary in order to align with our strategy moving forward, drive more efficient growth and deliver on our long-term vision, particularly due to a continued economic uncertainty,” Thomas said.

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