Layoffs in Canada’s tech sector continue as tough year draws to a close
Correctly, TealBook, D2L, League among the latest companies to downsize during an economic downturn.
At least 10 other Canadian tech companies have recently laid off employees as companies brace for what could be a prolonged economic downturn.
Correctly, TealBook, D2L, Symend and League have all laid off in recent weeks. Along with recent cuts from Apollo Insurance, Faire, Swift Medical, VanHack and Koho, these moves indicate that Canadian technology companies across all verticals and geographies continue to feel pressure from challenging market conditions.
“Conditions have deteriorated much faster than expected and we cannot predict when the market will recover.”
-Anshul Ruparell, Correctly
This group joins a growing list of Canadian tech companies that have laid off employees this year in a bid to cut costs and expand their footprint amid what has become a tough fundraising market and environment. broader economy fueled by rising interest rates in the face of rising inflation.
As TealBook Founder and CEO Stephany Lapierre said on November 1 letter to employees, since TealBook’s 50 million US dollars Series B Tour 2021 – during what has been all-time high for venture capital investments – “the market has changed dramatically”.
“Now is not the right time to raise capital,” Lapierre told BetaKit. “We expect several technology companies in our space to run out of capital over the next 12-18 months. We wanted to extend our track to 40 months to ensure we launched successfully [our supplier data platform] and weather the other side of this downturn in a strong, opportunistic position for growth.
Toronto-based TealBook has laid off 34 employees, which Lapierre said represents 19% of the supply chain data startup’s team.
For proptech startup Properly, also headquartered in Toronto, these conditions have led to what co-founder and CEO Anshul Ruparell described as “one of the most significant corrections in Canadian market history. the dwelling”.
In a November 15 letter to Properly employees, Ruparell wrote that Properly began recruiting staff during “a historic flurry in both the real estate market and the startup funding environment”. Since then, both markets have cooled.
“Conditions have deteriorated much faster than expected and we cannot predict when the market will recover,” Ruparell wrote. “I am responsible for the decision to expand our team to support a level of scale and growth that it is now clear will not materialize in the foreseeable future.”
Properly’s layoffs affected 71 employees. Asked by BetaKit, Ruparell did not specify what percentage of the company’s staff was affected. Based on Properly’s workforce on LinkedIn, the 71 employees would represent nearly 37% of the company.
These layoffs come three months after BetaKit reported that Properly had raised C$36 million in “Series B 2” capital to expand its runway and put its geographic expansion plans on hold.
In a November 16 statement Announcing the cuts, EdTech company management wrote, “We believe these changes will allow us to continue to be successful in the current economic environment.”
D2L did not specify how many employees were affected by the move, however, according to LinkedIn, D2L currently has 1,232 employees, indicating that the layoffs may have affected around 60 people. BetaKit reached out to D2L for comment, but the company didn’t share any further information or context, instead pointing to its existing statement.
In Alberta, BetaKit reported earlier in the day, Calgary-based customer engagement software startup Symend laid off about 13% of its current staff of 234 and closed C$54 million as it sought to adjust spending and evolve effectively.
For its part, a health technology company based in Toronto League appears to have laid off seven percent of its staff, according to LinkedIn posts former employees, with a noting that these were “company-wide layoffs”. BetaKit has not independently confirmed the figure, and League had not responded to a request for comment at press time.
According to LinkedIn, League currently employs 618 people, indicating that around 43 employees may have been affected by the cuts.
Vancouver insurtech startup Apollo Insurance too would have laid off 25% of its employees this week. Insurance Business Magazine reported that the cuts came after Apollo Insurance failed to meet its revenue targets. Apollo Insurance has 118 employees according to LinkedIn. When contacted by BetaKit, Apollo Insurance did not confirm the number of employees or percentage of company staff affected by these cuts, but noted that they “reflect a renewed focus for our organization.” .
Apollo Insurance co-founder and vice president of marketing and public relations David Dyck told BetaKit that despite these cuts, Apollo Insurance plans to continue investing in its technology platform, adding that “these changes will not reduce any of our existing technologies or product offerings.”
Meanwhile, Information reported that Fair laid off about 7% of its 1,200 employees last month as the Kitchener-Waterloo and San Francisco-based online wholesale market faces a waning e-commerce boom and declining consumer confidence.
“We made the difficult decision to restructure and downsize a few teams last month to focus more on our core priorities in 2023,” a Faire spokesperson told BetaKit. “While several employees were transferred to new teams, the approximately 7% who could not be transferred internally received a severance package. Our number one priority remains to serve our community and we are well positioned to do so in the future.
fast medical, a Toronto-based wound care management startup, also appears to have cut staff recently. One source put the amount at nearly a third of the startup’s employees. A LinkedIn position from a current Swift Medical senior partner in talent acquisition noted that relevant roles include sales, marketing, engineering, R&D, product and operations. According to LinkedIn, Swift Medical currently has 134 employees.
A month ago, VanHack founder and CEO Ilya Brotzky advertised on LinkedIn that the Vancouver-based tech talent network had also laid off staff. Based on talent list Brotzky shared, 32 people were fired. VanHack currently has 100 employees, according to LinkedIn.
“As a start-up company, we had no choice but to respond to the sharp drop in hiring,” Brotzky told BetaKit. “Our goal is to learn from this terrible experience and make sure it never happens again.”
“We expect several technology companies in our space to run out of capital over the next 12-18 months.”
– Stephany Lapierre, TealBook
Toronto FinTech Company Cohowhich recently laid off 15 people from its Instant Pay product and user success teams, has been careful about hiring.
Koho founder and CEO Daniel Eberhard called the cuts restructuring rather than layoffs, noting that with a team of 350, the cuts represented 4% of Koho’s workforce. “We entered a virtual hiring freeze in the second quarter. Today, we are judiciously recruiting all products, [engineering]and a few other functions,” he told BetaKit.
These 10 companies are far from the only high-growth tech companies laying off staff in this economic environment. According to the layoff tracking website Layoffs.fyi834 startups worldwide have cut a combined 134,164 employees so far this year as of press time.
South of the border, e-commerce giant Amazonfacebook parent Metaand another social media company Twitter cut thousands of employees over the past two weeks in a series of mass layoffs that affected an unknown number of Canadian workers.
Feature image courtesy correctly.