Bolt, a one-click checkout startup valued at $11 billion, has laid off about 240 employees.
CEO Maju Kuruvilla announced the layoffs in a sluggish message to Bolt employees on Wednesday morning. The company did not announce how many people were being laid off, but a Google spreadsheet compiling the affected employees listed more than 100 names as of Wednesday evening – comprising more than 10% of the company’s total workforce., The number of people on the company’s Slack channel dropped from about 900 to 660.
Sales and marketing hit particularly hard, sources reveal Forbes, although the spreadsheet indicates layoffs in other departments, including engineering and product. According to two people affected by the layoffs, most or all of the team of sales development representatives was laid off. The company last raised $355 million in January and employed more than 900 employees after it acquired crypto startup Wire in April.
As recently as last month, the company told employees in a unanimous meeting that it had a runway of 24 months, according to two people present. However, the company seems to have lagged behind in its business metrics. Bolt said in January that it was targeting 100 million buyers by mid-2023, but a source said the target was behind the track, currently hovering at less than 20 million.
Reached for comment, a Bolt spokesperson said only that the company was “focused on our people today” and referred Forbes A copy of Kuruvilla’s Slack message, which was posted on the company’s website.
“In an effort to ensure that Bolt is the master of its destiny, the leadership team and I have made the decision to secure our financial position, expand our runway, and reach profitability with the funds already raised.” Kuruvilla wrote. The message refers to market conditions in the tech industry as an incentive for layoffs.
The drop in head count on Slack was first reported in the New York Times.
The layoffs are the latest chapter in unrest for Bolt, which earlier this year brought on Kuruvilla to take the CEO role from cofounder Ryan Breslow, who stepped down and became executive chairman. Weeks ago, Breslow published a controversial Twitter thread alleging that fintech giant Stripe and startup accelerator and Fund Y Combinator were “crowd owners” who were preventing Bolt from raising new funds. ,Forbes profiled Breslow last month, following those events.)
The Information reported last month that Bolt’s revenue had stalled and that its subscriber base declined in 2021 from a year earlier. Authentic Brands Group, a major customer, sued Bolt, alleging it caused the Forever 21 parent company to lose $150 million in lost sales, as first reported in Bloomberg.