Link-in-bio startup Linktree is cutting about 50 jobs from its global workforce, a 17 percent workforce reduction.
“I have more news to share than anything I’ve done today,” founder Alex Zakaria told employees in an email.
“Our people have built Linktree to what it is today: trusted by millions of people around the world. “I’m heartbroken to say goodbye to my unbelievable teammates today and I want to do everything I can to support them,” he said.
Founded six years ago, Linktree has grown from a side hustle for music customers to become one of the world’s most popular web destinations, with 1.2 billion monthly visitors and 25 million users. It is a tool to copy content on social media sites like Instagram, Facebook, YouTube and Twitch, send viewers to other sites or e-commerce store, and optimize the internet presence of a celebrity, company or blogger.
“In order to meet the needs of our users throughout the last year, we saved a lot of our activities, made some big bets and set a big employment target to meet them. I thought that the favorable economic conditions will continue in 2022,” he told the employees.
“Instead, circumstances changed faster than expected and my assumptions were wrong. I have many lessons to take into the next phase of Linktree building. That next phase involves reducing roles that don’t align with our roadmap and narrowing our focus on our long-term strategy.
The company notified employees 10 minutes before the layoffs were announced via email.
Zakaria went on to say on LinkedIn that the cuts were to “come out of the recession stronger.”
His comments echo those of Supify CEO Toby Luttke, who said two weeks ago that the Canadian company was cutting its workforce by 10 percent.
It’s less than five months since Melbourne-based Linktree announced it raised $152 million (US$110m). The business asked for a $1.8 billion price increase in March. That third round of capital came 12 months after the initial $59 million Series B round.
Profitable from the start
Linktree in 2010 It has been profitable since its inception in 2016 and has been loaded into 2020, raising $15 million in Series A capital in early October.
Zakaria told the employees that the company “is going above and beyond the legal requirements in all markets and it is a rewarding period” and the average payment is more than 11 weeks. The business leaves the next phase of transition to employees who receive option awards under Linktree Aesop. All employees who leave will keep Macbooks and any work from home equipment.
The business is also celebrating a company-wide Mental Health Day on Friday.
Startup Daily has contacted the company’s public relations firm for comment from the business. He referred us to Zachariah’s LinkedIn post.
Linktree’s investors include European VC Index Ventures, New York Cote Management, domestic fund Airtree and Insight Partners. US company Greenox, fellow Melbourne tech unicorn Airwallex, Postpaid co-founder Nick Molnar, LinkedIn executive chairman Jeff Weiner, ex-Bumble exec Michelle Kennedy and ex-Slack’s April Underwood.
Linktree’s job losses follow a series of tech job cuts both domestically and globally, alongside some major startup failures.
Last week, digital marketing start-up Metigy was placed into administration with the loss of 75 jobs.
Last month, Sydney NFT gaming startup Unchanged cut 20 staff from its team – 6% – less than five months after raising $280 million, just days after the fintech debtor laid off 40 staff for $22.5 million.
Postal service Sendl has rehired 12 percent of its global workforce.
In recent months, Neobank Vault closed with the loss of 140 jobs after failing to attract new capital. Melbourne cryptocurrency startup Banxa shed 30% of its staff and fintech Bright cut 15% of its team, while Melbourne-based innovation marketplace Invato axed 100 jobs globally. Clinical trials medtech HealthMatch cut its team in half and lost 18 jobs.