Home / Tech / 10 startups, including ClassPass and TheWing, have begun cutting significant proportions of their workforces just this week

10 startups, including ClassPass and TheWing, have begun cutting significant proportions of their workforces just this week

FILE - In this March 18, 2020 file photo, visitors to the Department of Labor are turned away at the door by personnel due to closures over coronavirus concerns. The coronavirus pandemic has already hurt many households financially.  Americans have been hit with layoffs, furloughs and reduced hours across the country. Those who have not are still facing massive economic uncertainty. Experts say it's more important than ever to manage your budget, reach out to lenders and seek protections available to those hit by the economic impact of the virus. (AP Photo/John Minchillo, File)

  • Tech startups have not been spared from the coronavirus outbreak, which has prompted historic layoff activity
  • Just this week, at least 10 startups have shaved off significant proportions of their workforce, including female co-working space The Wing and workout-subscription startup ClassPass. 
  • Visit Business Insider’s homepage for more stories.

A wave of startup layoffs prompted by the coronavirus pandemic appears to have hit almost every sector — travel companies like TripActions, child-care startup Wonderschool and electric scooter startup Bird have all been forced to lay off workers in recent weeks.

Venture-backed startups are grappling with a new economic reality brought by the coronavirus pandemic — plans to raise funding are dissolving rapidly as the threat of a recession grows. Already, funding for private companies has fallen by 12% according to CB Insights and it seems likely to dry up further.  There are also reports from founders saying investors are using the COVID-19 pandemic to renege on deals, Business Insider previously reported.

So as startups begin to draft emergency plans to conserve cash this week, job cuts across the ecosystem have ramped up further, even as the coronavirus outbreak prompts historic layoff activity across the entire US economy. 

Business Insider is tracking the layoffs and what’s happening at each company. The numbers are based on our own reporting as well as media reports elsewhere. 

Coco-Cola-backed buzzy startup Iris Nova laid off 50% of its staff

Source: Business Insider

Women-focused coworking space The Wing laid off almost all of its space teams and half its headquarters

Source: Fast Company

ClassPass has cut or furloughed the jobs of half of its employees

Source: CNBC

Austin-based unicorn RigUp laid off 25% of its workforce

Source: AmericanInno

 

Services-focused platform Thumbtack cut 250 employees

Source: Thumbtack

Pet-care startup Rover laid off 41% of its workforce

Source: GeekWire

Overtime, the Kevin Durant-backed sports media startup, laid off 20% of its employees

Source: Business Insider

KeepTruckin laid off 349 employees

Source: FreightWaves 

DTC lingerie startup ThirdLove cut between 30-35% of its staff

Source: Business Insider

E-commerce company Modsy laid off an unspecified number of staffers

Source: TechCrunch