ClickUp Cuts 10% of Workforce Amid Market Slowdown

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ClickUp, the software-as-a-service startup known for its workforce productivity platform, has recently laid off 10% of its workforce. Backed by prominent investors such as Andreessen Horowitz and Tiger Global, the company’s decision to reduce its workforce by approximately 90 employees is part of its strategy to become more efficient and better positioned for a public listing amid the ongoing market slowdown.

A Strategic Move Towards Efficiency

The San Diego-based startup informed some of its affected employees about the layoffs last Thursday, with others set to transition out over the next few months. The job cuts impacted various divisions, including software engineering, customer service, and support teams.

Zeb Evans, founder and CEO of ClickUp, stated that the decision to reduce the workforce size was primarily to move a portion of their support roles to lower-cost regions. This realignment, according to Evans, enables ClickUp to be a best-in-class IPO-ready company in efficiency while continuing to overachieve in growth.

Support for Affected Employees

Impacted employees will receive a severance package lasting 12 weeks, six months of insurance coverage, and six months of access to the startup’s employee assistance program. ClickUp has also allowed the laid-off employees to retain their laptops and equipment and has extended support to those on a visa.

This is not the first time ClickUp has made such a move. In 2022, the company laid off 7% of its staff as part of its restructuring, which was described as a “one-time decision” to stay on track toward profitability.

ClickUp’s Journey and Future Plans

Founded by Zeb Evans and Alex Yurkowski in 2017, ClickUp has raised $400 million in a Series C funding round co-led by Andreessen Horowitz and Tiger Global at a post-money valuation of $4 billion. The startup counts, IBM, Spotify, T-Mobile, and Netflix among its customers and provides a unified platform for document collaboration, project management, spreadsheets, and chat.

Despite the layoffs, ClickUp plans to continue hiring for roles aligned with its mission, especially those geared towards product and revenue. As the company navigates the market slowdown, its focus remains on becoming an efficient, IPO-ready company while continuing to grow and serve its customers.

According to TechCrunch by Jagmeet Singh

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