ClickUp, the SaaS startup known for its workforce productivity platform, has made headlines with its decision to downsize its workforce by 10%. Backed by notable investors such as Andreessen Horowitz and Tiger Global, the company aims to enhance its efficiency and prepare for a potential public listing amidst a market slowdown.
With around 900 employees in total, this reduction amounts to approximately 90 individuals who have been affected. According to sources, the San Diego-based startup informed impacted employees of the layoffs last Thursday. Over the coming months, other employees affected by this decision will also be transitioning out of the company. The job cuts encompassed various teams, including software engineering, customer service, and support.
Zeb Evans, the founder and CEO of ClickUp, provided insights into the reasoning behind these actions. Evans stated that the company made this challenging choice primarily to relocate certain support roles to regions with lower costs. This realignment is intended to position ClickUp as a top-tier company, ready for an IPO, by improving efficiency while continuing to excel in growth.
Acknowledging the emotional toll that these situations can have, ClickUp has extended access to its employee assistance program for the same duration. This program will provide much-needed support and resources to help the affected employees navigate through this period of transition and uncertainty.
This is not the first time ClickUp has undergone a restructuring process. In 2022, the company laid off 7% of its staff as part of an effort to maintain profitability. A spokesperson for ClickUp described the move as a “one-time decision” aimed at staying on track toward financial success.
ClickUp boasts an impressive client list that includes renowned companies like Booking.com, IBM, Spotify, T-Mobile, and Netflix. Its platform offers a unified solution for document collaboration, project management, spreadsheets, and chat. In line with industry trends, ClickUp has recently introduced an AI-based assisting solution, following in the footsteps of major tech companies.
Founded in 2017 by Zeb Evans and Alex Yurkowski, ClickUp secured $400 million in a Series C funding round. The funding was co-led by Andreessen Horowitz and Tiger Global, resulting in a post-money valuation of $4 billion. Lightspeed Venture Partners, Meritech Capital Partners, Craft Ventures, and Georgian Partners are among the other notable investors in the startup.
“We are very grateful for the contributions of the employees who have been impacted and are committed to supporting them throughout this transition. At the same time, we will continue to hire for roles aligned with our mission, especially those geared towards product and revenue,” the CEO said.
