Benchmark-backed Optimizely confirms it has laid off 15% of staff

Benchmark-backed Optimizely confirms it has laid off 15% of staff

Optimizely, a San Francisco-based startup that popularized the idea of A/B testing, has laid off 15% of its workers, the corporate confirmed in a press release to TechCrunch. The layoff impacts round 60 folks, and people laid off got different ranges of severance. Each worker was given six months of COBRA and was allowed to maintain their laptops.

“As with so many different companies globally, Optimizely has been impacted by COVID-19. Today, we’ve got needed to make a heartbreaking resolution to cut back the scale of our workforce,” Erin Flynn, chief folks workplace, wrote in a press release to TechCrunch, including that “at this time’s troublesome resolution units up our enterprise for continued success.”

The startup was based in 2009 by Dan Siroker and Pete Koomen on the concept it helps to have clients expertise totally different variations of the web site, also referred to as A/B testing, to see what iteration sticks greatest. A 12 months after founding, the startup went by way of Y Combinator and in 2013 it signed a lease for a 56,000-square-foot workplace in San Francisco.

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Optimizely final raised $50 million in Series D financing from Goldman Sachs, bringing its complete enterprise capital secured thus far to $200 million. Other traders embody Index Ventures, Andreessen Horowitz and GV.

In June, Optimizely stated it handles greater than 6 billion occasions a day. Customers embody Visa, BBC, IBM, The Wall Street Journal, Gap, StubHub and Metromile.

Optimizely was not listed as making use of for a PPP mortgage, a program created by the federal government to assist companies keep away from shedding workers. The loans have been met with controversy in Silicon Valley, as some thought venture-backed companies ought to flip to traders, as a substitute of the federal government, for additional capital.

Optimizely’s layoffs are considerably shocking, given current earnings studies that present that enterprise SaaS corporations have broadly benefited from the coronavirus pandemic. In an internet work world, infrastructure and software program companies turn into extra very important by the day. Box, for instance, helps folks handle content material within the cloud and it beat expectations on adjusted revenue and income. So why is Optimizely struggling?

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There are a ton of causes for layoffs past what the market thinks a couple of enterprise. Optimzely’s clients are a mixture of heavy-hitters in enterprise, but in addition embody companies which have struggled throughout this pandemic, together with StubHub and Metromile — each of which had layoffs.

While the tempo of layoffs is slowing down, cuts themselves aren’t disappearing. As the shares present us, it’s a risky time and companies are searching for methods to remain financially protected.


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