Podium Layoffs 2023 – what is the reason behind this?

Podium Layoffs. The startup Podium was also added to the growing list of Tech Layoffs. Podium is the latest startup in the tech industry. It is well known among other startups as it provides customer management services. That helps other businesses communicate via text and chat boxes. 

Key Highlights:

  • Reportedly, a customer management startup, Podium, worth 3 billion US dollars, confirmed layoffs. It laid off about 12 per cent of its workforce in December 2022.
  • From multiple firms, such as Summit Partners, Accel, and IVP. Podium boosted around 201 million US dollars.
  • Expectedly, through the start of 2023, Podium’s hiring slowdown might be increased.
  • So far, thousands or even millions of employees have been laid off in the tech sector alone since 2020.

The most prominent sector in the news is the tech industry. Due to this, a lot of people have heard about tech Layoffs. Podium, a tech company, also laid off employees last year. So, what do the latest Podium layoffs and other companies’ cutbacks indicate? Are you interested to know about it?

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What Happened With The Layoffs At Podium?

A Lehi, Utah-based startup company Podium boosted nearly 201 million US dollars. The amount generated from its venture capital companies. Including IVP, Accel, and Summit Partners.

According to reports, as of December 2022, Podium has more than 1,300 employees. They help other businesses to better communicate with their customers.

Due to uncertainty in economic growth. The layoff trend is becoming increasingly popular these days. In the tech industry, Podium and many major companies have also announced layoffs so far. These high-profile startups have escalated this fall. 

No Industry is left unaffected. Other Big tech companies that have laid off employees include: 

StockX, Stripe, and Chime. Due to economic slowdown, and other reasons, many big companies and even startups have been forced to announce layoffs. More are also forced to cut costs and slim their workforce.

Podium adapted a variety of ways to cut costs. It revealed that it has plans to do so. According to the latest report, Ways to cut costs include:

  • Podium planned to increase its hiring slowdown at the start of this year (2023).
  • Reduce expenses on software spend.
  • Subleasing its office space.
  • Cutting back perks and other benefits.

Eric Rea and Dennis Steele, the company’s founder, said in a statement. “Being founders of this startup company, we can feel how you all think. We can understand your pain and how personal these changes are for you.” They also added, “Whatever could be the decision. 

We have promised to accept full responsibility for the decisions. We are not feeling great while making these important changes. Despite it, we apologize for that decision, but these changes are important to be made.”

The reason cited for this reduction move was its macroeconomic environment uncertainty. The company’s CEO said, “Whatever decisions we made in sales and customer experience at the start of the year. 

These decisions did not have the impact that we believed. Besides, overhiring is one of the major decisions that led to the layoff. We need to shift our focus to drive the business in the future.”

“While we have always been disciplined about unit economics. At the same time, we will need to be even more focused on driving the business forward in a macroeconomic environment. 

This condition is less forgiving. However, these decisions take work to make. But still, they are important because they put us in a position where we can control our destiny.”

In truth, employees were unfamiliar with the fact that they were eliminated. But when they got an email, they knew about the reality. Affected employees were given calendar invites. So that they can meet their department leadership and company members.”

Bloomberg reports saying the company generated over 100 million US dollars in annual revenue, according to the CEO of the company. In November 2021, Podium increased about 201 million US dollars in funding. Due to this, the valuation was boosted to 3 billion US dollars.

As we all know, the economic conditions may be much different. Still, analysts discussed a possible initial public offering that makes no sense.

The purpose of the layoff at Podium is that the company wants to decrease its expenses. To do so, Podium extended their hiring slowdown and expected to be there till this year.

According to Business Insider reports, affected employees were unaware of the layoffs. They knew about it when they got an email. 

Severance packages

The company committed to offering its affected employees six months of severance. Moreover, for US-based employees, it also covered several health benefits. According to the company, all US-based employees were provided health care premiums in January.

Besides, they were also offered an additional month of vesting. Those employees who have yet to complete their vesting Cliff for a year. Then they were eliminated with no additional vesting. We apologize for doing this, but it is important.”

What Type Of Company Is Podium?

Podium is a private type technology company founded by Eric Rea and Dennis Steele in 2014. They launched a tool by which other businesses can be helped. They help through online reviews in building their reputation.

It is headquartered in Lehi, Utah, United States. The company focuses on offering cloud-based software. That is closed to selling products, messaging, online reviews, customer feedback, and requesting payments. 

In simple words, Podium is the latest software cum service platform. That specializes in building the online reputation of businesses. Users can handle online business interactions with just a single tool. Besides, they can text, communicate reviews, post payments, and chat without any hindrances through the app.

The startup Podium was formerly known as RepDrive. In 2015, it was rebranded as Podium. The same year, it shifted to a new place above a Provo bike shop from a spare bedroom.

During the coronavirus pandemic, It refreshed its product suite by adding payments technology. Later, it raised around 201 million US dollars in Series D funding valued at 3 billion US dollars in November 2021.

Between 2016 and 2017, Mountain West was considered the Podium as one of the Emerging Elites. Moreover, according to Glassdoor in 2017, due to this startup. Its founder Eric Rea was supposed to be the highest-rated CEO. In the same year, Utah Valley Magazine enlisted the company as the No 1 Startup to Watch in September. 

In December, it became one of the Best companies to work for. A year later, according to Glassdoor, Podium ranked 16th in the ‘Best Places To Work’ list. It was also ranked 13th on the 2018 Inc. 5000.

It was well known as one of the Next Billion Dollar Startups. In 2018, Deloitte disclosed Podium became the 9th fastest emerging and growing tech company. In 2019, Podium was named one of the most innovative companies in the world.

Notable Tech Layoffs In 2023?

Recently, tech layoffs come on the top among other major sector layoffs. Below we are keeping track of the latest notable job cuts. I also compiled a list of companies that announced layoffs in 2023. Let’s find out:

  • On August 2, Salesforce announced laying off. Around 8,000 workers, or 10 per cent of its total workforce, will be affected by the next year. Ireland-based sales and customer service roles will also be affected.
  • On July 26, a gaming developer, CD Projekt Red, announced laying off 100 workers. According to reports, overstaffing is the reason behind it. 
  • On July 24, Virgin Media, the UK-based telecom industry, announced job cuts. Around 20,000 workers will be laid off, or 12 per cent of its total workforce, by this year.
  • On July 10, Microsoft announced that it would lay off 276 workers. Of which 210 workers will be from the Washington side. The rest of them will be remote workers.
  • On July 10, Evernote announced plans to lay off an unspecified number of employees this year. Most affected employees will be from the US side as the company started to move its operations to Europe.
  • On July 4, ClickUp, the project management software solution. It announced laying off 900 workers, or about 10 per cent of the company’s workforce.
  • Uber is laying off 200 employees.
  • Bell is laying off 1,300 employees.
  • LinkedIn is laying off 716 employees.
  • Sumo Logic is laying off 80 employees.
  • 23andMe is laying off 75 employees.
  • Reddit is laying off 90 employees.
  • Spotify is laying off 200 employees.
  • TrueCar is laying off 100 employees.
  • ZipRecruiter is laying off 270 employees.
  • BT is laying off 55,000 employees.
  • Vodafone is laying off 11,000 employees.

Final Verdict 

In conclusion, if you are aware of the layoff trend. Then you would have heard that Podium joined the growing list of tech layoffs. Last year, this tech startup emerged as the latest one that announced layoffs as the company laid off about 12 per cent of its workforce.

However, the reasons behind layoffs for the individual tech company can differ. But the major factors include: 

The economic slowdown during the rise of AI and the coronavirus pandemic. Overhiring is another major factor.

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