Checkout Startup Bolt serves more than 200 people, or at least 25% of its employees
Bolt, the $11 billion one-click payment startup, has laid off about 240 employees.
CEO Mago Korovila announced the layoffs in a Slack message to Bolt employees Wednesday morning. The company hasn’t announced how many people have been abandoned, but Google’s spreadsheet of affected employees has more than 100 names listed as of Wednesday evening — representing more than 10% of the company’s total workforce.. The number of people on the company’s Slack channel has dropped to 660 from about 900.
Sources say sales and marketing have been hit hard Forbes, although the spreadsheet indicates layoffs across other divisions including engineering and products. Most or all of the sales development reps team has been laid off, according to two people affected by the layoffs. The company last raised $355 million in January and employed more than 900 employees after acquiring crypto startup Wyre in April.
More recently, last month, the company told employees at a sweeping meeting that it had 24 months off the runway, according to two people present. However, the company appears to be lagging behind in its business metrics. Bolt said in January he was targeting 100 million shoppers by mid-2023, but a source said the target was behind the right track, hovering at just under 15 million people currently.
When reached for comment, a Bolt spokesperson only said that the company is “focused on our employees today” and noted Forbes To a copy of Kuruvilla’s Slack message, which was posted on the company’s website.
“In an effort to ensure Bolt has its own destiny, the leadership team and I have made the decision to secure our financial position, extend our runway, and reach profitability with the money we have already raised.” Korovilla Books. The letter points to market conditions in the tech industry as a driving force for layoffs.
The drop in people on Slack was first reported in the New York Times.
The layoffs are the latest chapter in the turmoil for Bolt, who earlier this year brought Corovilla to take over the CEO role from co-founder Ryan Breslow, who stepped down and became CEO. Weeks ago, Breslow posted a controversial topic on Twitter that claimed fintech giant Stripe, startup accelerator and fund Y Combinator were “gangsters” who prevented Bolt from raising fresh money. (Forbes Breslow last month, in the wake of those events.)
Information last month reported that Bolt’s revenue has stalled and the number of its customers has fallen in 2021 from the previous year. Authentic Brands Group, a major customer, has sued Bolt, claiming it cost parent company Forever 21 a $150 million loss in sales, as first reported in Bloomberg.