Textile manufacturing startup SRTX has made its temporary layoffs permanent for 92 employees.
The company temporarily cut 40 percent of its roughly 350 employees in February as it dealt with duties imposed by the United States.
The Sheertex maker made the cuts official in a filing with the Government of Québec earlier this month, saying it dismissed the employees in early August for economic reasons.
The company temporarily cut 40 percent (around 140) of its roughly 350 employees in February as it dealt with duties imposed by the United States. When SRTX named BonLook co-founder Sophie Boulanger as its new CEO earlier this month, the company told BetaKit it had since called back “well over a third of its employees,” which equates to about 46 retained staff.
Founded in 2017 as Sheerly Genius, Montréal-based SRTX makes Sheertex rip-resistant tights, which consist of a uniquely durable polymer several times stronger than steel wire. SRTX also develops two B2B products: Cortex, a software-based manufacturing solution, and Watertex, a patent-pending water-repellent fabric.
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Founder Katherine Homuth stepped down in March to help the company secure a much-needed $40-million USD fundraising deal to survive the impact of US tariffs that would have imposed a hefty tax on consumer orders, according to the founder. Before the deal, which was contingent on her departure, Homuth said SRTX needed $23 million USD in equity financing by the end of Q1 2025 to become profitable.
While the funding did buy SRTX time, the “pay-to-play” deal diluted non-participating investors’ stakes and reduced SRTX’s valuation from $325 million USD to $95 million USD. After a short stint with CFO Timothy Leyne as interim leader, Boulanger got the top job earlier this month. SRTX told BetaKit that Boulanger will assess staffing needs “to ensure SRTX has the right team in place to support sustained growth.”
Homuth has gone on to found a new software venture, Oomira, and is developing a set of standards to help founders negotiate their working conditions.