Bolt, a $11 billion San Francisco startup, has mass layoffs

Latest / May 26, 2022 / DRPhillF / 0

The San Francisco-based tech startup that helped promote a four-day work week in Silicon Valley is now laying off workers.

As first reported by the New York Times, Bolt, the payment services startup with offices near Union Square in San Francisco, laid off about 250 of its 900 employees on Wednesday in a move to “secure our financial position, expand our runway, and access to profitability with the money we’ve already raised” amid industry-wide financial challenges, according to a letter to employees.

Mago Korovilla, the newly appointed CEO, said in the letter, which was released to the public Wednesday.

A laid-off employee, posted on an anonymous forum Blind, said they received the news “after receiving a raise just two weeks ago”.

The company, which is already dealing with a rocky 2022 year, has to contend with the reality of a challenging period for emerging tech startups.

Shortly after the flurry of good press that Bolt received in January to implement a permanent four-day work week (and most importantly, its massive $11 billion valuation), the company suffered a torrent of bad news. Founder and Former CEO Ryan Breslow Post a fiery topic on Twitter Accusing the prominent startup accelerator Y Combinator of “Mob Sh*t” and being corrupted by “money, power and greed.” (Breslow resigned as CEO of the company after a few days.)

In April, Authentic Brands — the fashion retail conglomerate that owns Forever 21, Reebok and a high-profile Bolt customer — sued the company for failing to deliver on its promises of a timely checkout system for the brands.

The New York Times also published a presentation earlier in May claiming that the company has expanded the truth about its services to potential investors and traders.

Korovilla ended the letter: “There is no good way to share the news of the restructuring, but it is in our culture to be open and caring, today and always.” “I cannot thank you enough for all of your dedication past, present and future to make the Bolt what it is. We have a great team, a great product, and the market needs us more than ever. But today, I’m focused on our people. Please be aware and take care of your colleagues and yourself.” “

It is not clear what termination benefits the laid-off employees will receive.

Bolt representatives did not immediately respond to a request for comment from SFGATE.