$1.5 billion ZipRecruiter just laid off hundreds only days after the CEO told employees the business wasn’t impacted by the coronavirus

  • Online job-hub company ZipRecruiter laid off 443 employees and furloughed dozens on Friday, just a few days after the CEO said in an all-hands meeting that the company was on track to hit its second-quarter revenue goals and wouldn’t be affected by the coronavirus. 
  • The cuts hit across departments, including engineering and about two-thirds of the enterprise team, which works with big clients. Executives impacted included the chief marketing officer.
  • ZipRecruiter last raised $156 million in an October 2018 Series B funding round led by Wellington Management and IVP that valued the company at $1.5 billion. 
  • Visit BI Prime for more stories.

ZipRecruiter CEO Ian Siegel had a reassuring message for the company’s roughly 1,300 employees at a virtual all-hands meeting last Monday: the business was safe.

The Santa Monica, California-based job search engine would not be affected by the coronavirus, and the company was on track to meet its second quarter revenue goals, so it wouldn’t take any drastic measures, Siegel had said, according to two employees who were present at the meeting.

On Friday, ZipRecruiter’s human resources team sent out an invitation to another webinar with the CEO. In that meeting, Siegel spoke for less than 10 minutes, telling hundreds of employees they were laid off, according to the two employees, who declined to be named because they’re not authorized to speak to the press. 

Siegel detailed what benefits the employees would receive: one month of salary and three months’ health insurance. They could also keep their company-issued laptops. 

During Friday’s cuts, 443 employees were laid off, and 49 employees were furloughed, per Dot.LA, which first reported the news on Sunday.   

A ZipRecruiter spokesperson and Siegel, chief financial officer David Travers, and chief operating officer Jeffrey Zwelling did not respond to requests for comment on Saturday.

On Sunday, Siegel pointed to his statement in Dot.LA and declined further comment.

“Our customer base looks like the U.S. economy by size, geography and industry,” Siegel told Dot.LA. “The U.S. economy is hurting and we regretfully have to do what is necessary to make sure we are there for the great American comeback story to come.”

Friday’s layoffs went across departments, affecting groups ranging from communications to engineering to two-thirds of the enterprise team, which works with big companies, one of the sources said. The chief marketing officer was also laid off, according to his LinkedIn profile.

ZipRecruiter, founded in 2010, says it’s worked with over 1.8 million businesses and has offices in the US, Canada, the UK, and Israel. It last raised $156 million in an October 2018 Series B funding round led by Wellington Management and IVP that valued the company at $1.5 billion, according to data provider Pitchbook. 

Companies globally are struggling with the immediate economic hit from the coronavirus, which has frozen operations across industries. Unemployment claims in the US spiked this week, hitting a record 3.3 million. 

The unprecedented number of unemployment claims shows the exceptional damage the coronavirus pandemic is inflicting on the US economy. As the country races to curb its spread, states have gone into lockdown — sending workers home, encouraging social distancing, and closing schools, restaurants, and factories.

Startups across industries, many of which lack a capital cushion, have begun laying off and furloughing employees. On Friday, flexible space operator Knotel laid off 30% of its workers and furloughed another 20%, Business Insider previously reported

TripActions, the $4 billion Andreessen Horowitz-backed corporate travel startup, laid off 296 employees on Tuesday as the travel industry grinds to a halt. 

Get in touch! Contact this reporter via encrypted messaging app Signal at +1 (646) 768-1627 using a non-work phone, email at mmorris@businessinsider.com, or Twitter DM at @MeghanEMorris. (PR pitches by email only, please.) You can also contact Business Insider securely via SecureDrop.

Loading Something is loading.

View original article here Source