• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
TechTerm Sheet

Well-Funded Startups Are Cutting Costs and Laying Off Staff

By
Erin Griffith
Erin Griffith
Down Arrow Button Icon
By
Erin Griffith
Erin Griffith
Down Arrow Button Icon
December 9, 2016, 3:59 PM ET
Boom With A View by Erin Griffith: Social Media
Illustration by Aleksandar Savic
Add Fortune on Google for similar content.

This article originally appeared in Term Sheet, Fortune’s newsletter about deals and dealmakers. Subscribe here.

It’s the kind of thing that stinks to be right about. Earlier this week, I predicted that many startups would go through end-of-year layoffs. Some are trimming headcount after over-expanding based on revenue projections they didn’t meet. Some are shifting strategies. Others are in survival mode.

A few weeks ago, First Round Capital’s annual “State of Startups” survey revealed that 18% of the startups surveyed have undergone layoffs in the last year. I suspect if the survey were taken again in a month, that number would increase. Here are some of the startups cutting back:

• Delphix, a provider of data visualization software, laid off 40 employees, Fortune has learned. The company has raised $119 million from Fidelity Investments, Icon Ventures, Greylock Partners, Summit Partners, Lightspeed Venture Partners, In-Q-Tel, The Kraft Group, and Credit Suisse NEXT Investors.

In a statement, the company said, “Our refreshed executive team also reflects the evolving market opportunity. With these changes, Delphix is well positioned to continue helping hundreds of the world’s largest organizations become more agile and innovate at greater speed.”

• GuideSpark, a provider of software for human resources departments, laid off around 20% of its staff, or 60 people, in November, Fortune has learned. Guidespark Chief of Staff Pam Gonclaves confirmed the reduction “to expand and align its initiatives in the enterprise employee communications market,” and noted that employees were offered severance and outplacement assistance. The Menlo Park-based company has raised $42.5 million in venture funding from Meritech Capital Partners and Storm Ventures.

• The Honest Company announced it would lay off 80 employees and close its office in Austin, Texas. President and co-founder Sean Kane and CFO David Parker will also step down. The news, which ran in Women’s Wear Daily Tuesday, wasn’t picked up by the wider business press.

The Honest Company is Jessica Alba’s consumer products startup. It has raised $228 million in funding, valuing it at $1.7 billion, from Wellington Management, Lightspeed Venture Partners, IVP, Iconiq, Pritzker Group, General Catalyst, Fidelity, and AllianceBernstein.

Earlier this year, the company was reportedly in talks to sell to a large consumer products company for around $1 billion. That deal never happened and in a surprise move, Unilever acquired Seventh Generation in October.

• Beepi, an online marketplace for used cars, will lay off 180 workers and close operations in 16 unprofitable cities. The company will merge with a new venture called Fair that has not yet launched.

Mountain View-based Beepi has raised $149 million in funding from investors including DST Global, Foundation Capital and Flight Ventures.

• YikYak, an Atlanta-based anonymous messaging app, laid off 30 employees, or 60% of its staff, The Verge reported. The company also lost its CTO earlier this year. The app’s growth has stalled, according to The Verge, ever since it began requiring users to use handles to post their anonymous messages.

YikYak raised $73.5 million from Sequoia Capital, Vaizra Investments, DCM Ventures, Azure Capital Partners, and Atlanta Ventures, valuing the company at $400 million. It’s not clear whether YikYak has developed a way to earn revenue.

• Github, a San Francisco-based online project hosting startup, has made cuts to its sales department. The company confirmed the cuts to Fortune, saying the layoffs made up “less than 5%” of its employees. That would be around 30 people. A company spokesperson said the layoffs were part of Github’s focus on enterprise sales. “We are refocusing our resources in order to serve our customers more efficiently,” the spokesperson said.

Valued at $2 billion, Github has raised $350 million in funding from Andreessen Horowitz, Sequoia, IVP, Thrive Capital, and SV Angel.

• AdRoll has laid off around 29 employees, Fortune has learned. The San Francisco ad-tech company cut headcount after deciding to “focus on the growth areas that we’re most excited about.” AdRoll has raised $90 million in funding from Foundation Capital, Institutional Venture Partners, Northgate Capital, Performance Equity, Glenmede, Merus Capital, Accel Partners and Peter Thiel.

About the Author
By Erin Griffith
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

elon
CommentaryChina
China has 400 private space companies. The West is barely paying attention
By Rainer ZitelmannJuly 2, 2026
8 minutes ago
hegseth
Startups & VentureVenture Capital
The defense tech boom has become a bubble—or it will be soon
By Allie GarfinkleJuly 2, 2026
2 hours ago
Emily Blunt is worth $80 million and just pocketed $15 million for her latest film—but she once wanted to be a Spanish translator for the UN
SuccessCareers
Emily Blunt is worth $80 million and just pocketed $15 million for her latest film—but she once wanted to be a Spanish translator for the UN
By Orianna Rosa RoyleJuly 2, 2026
2 hours ago
How foodservice giant Sodexo is embracing AI and robotics to reshape the kitchen
NewslettersCIO Intelligence
How foodservice giant Sodexo is embracing AI and robotics to reshape the kitchen
By John KellJuly 1, 2026
16 hours ago
Anthropic CEO Dario Amodei
AIAnthropic
Anthropic’s AI models are back online after a two-week government standoff—settling the company and administration into a fragile truce
By Tristan BoveJuly 1, 2026
17 hours ago
Nikesh Arora, chief executive officer at Palo Alto Networks
SuccessJobs
CEO of $248 billion cybersecurity company says workers are about to face a ‘Darwinian moment’ thanks to AI: Evolve or get cut
By Emma BurleighJuly 1, 2026
18 hours ago

Most Popular

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
1 day ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
7 days ago
The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
Newsletters
The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
By Diane BradyJuly 1, 2026
1 day ago
Current price of oil as of July 1, 2026
Personal Finance
Current price of oil as of July 1, 2026
By Joseph HostetlerJuly 1, 2026
20 hours ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
5 days ago
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
Success
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
By Sydney LakeJune 29, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.