Bolt, the $11 billion one-click payment startup, has laid off some 240 employees.
CEO Maju Kuruvilla announced the layoffs in a Slack message to Bolt staff on Wednesday morning. The company did not announce how many people would be laid off, but a Google spreadsheet compiling affected employees had more than 100 names listed as of Wednesday night, representing more than 10% of the company’s total workforce. the company.. The number of people in the company’s Slack channel has dropped to 660 from about 900.
Sales and marketing were hit especially hard, sources say. Forbes, although the spreadsheet indicates layoffs in other departments, including engineering and product. Most or all of the sales development rep team was laid off, according to two people who were affected by the layoffs. The company last raised $355 million in January and employed more than 900 employees after acquiring crypto firm Wyre in April.
As recently as last month, the company had told employees at a general meeting that it had 24 months to go, according to two people who were present. However, the company appears to have fallen behind in its business metrics. Bolt said in January that he was aiming for 100 million shoppers by mid-2023, but a source said that target was behind schedule, hovering around fewer than 15 million people currently.
Reached for comment, a Bolt spokesperson said only that the company was “focused on our people today” and referred to Forbes to a copy of Kuruvilla’s Slack message, which was posted on the company’s website.
“In an effort to ensure that Bolt owns his own destiny, the leadership team and I have made the decision to secure our financial position, expand our track and reach profitability with the money we have already raised.” Kuruvilla wrote. The message alludes to market conditions in the tech industry as a driver for layoffs.
The drop in the number of employees at Slack was first reported in the New York Times.
The layoffs are the latest chapter of turmoil for Bolt, which earlier this year led Kuruvilla to take over as CEO from co-founder Ryan Breslow, who stepped down and became CEO. Weeks earlier, Breslow had posted a controversial Twitter thread alleging that fintech giant Stripe and startup accelerator and fund Y Combinator were “mob bosses” preventing Bolt from raising new funding. (Forbes profiled Breslow last month, after those events).
The Information reported last month that Bolt’s revenue had stagnated and its number of clients was down in 2021 from a year earlier. Authentic Brands Group, a major client, sued Bolt, claiming it cost Forever’s parent company $21.15 billion in lost sales, as first reported by Bloomberg.