Uberflip has joined the slew of tech companies that have had to make staff reductions amid the changing macroeconomic environment.
The Toronto-based startup has let go of 31 employees, approximately 17 percent of its workforce based on LinkedIn noting a headcount of 182 people. One Uberflip employee put that number closer to 20 percent in a LinkedIn post.
In a LinkedIn post on Thursday, Uberflip co-founder and CEO Yoav Schwartz cited “the current unsteady economy” as the reason for the cut, adding that the economic environment “made the short term future less predictable.” He noted that the layoffs followed “big investments” to scale the Ubeflip team in recent years in order “to be ready for the growth we’ve experienced and the growth we anticipate is ahead.”
Schwartz emphasized the difficulty of the decision. “Yesterday was one of the most difficult days in my career and one that most entrepreneurs obsess to avoid,” he wrote, adding that Uberflip is committed to assisting those impacted in finding a job at another company.
Founded in 2012, Uberflip’s platform allows B2B marketers to create tailored content at scale. All blogs, social, and videos can be found on one platform, and users can receive insight into improving future content for readers.
In 2018, Uberflip raised its most significant capital to date, securing $41 million CAD in growth equity from US-based Updata Partners. According to Crunchbase data, Uberflip has raised more than $50 million to date, including $6 million in debt financing in 2019. BetaKit has not independently verified that financing round.
In December 2019, Uberflip acquired Boston-based SnapApp, an interactive content creation platform for an undisclosed amount. Between 10 to 15 SnapApp employees were set to join the Unerflip team at the time, which would have brought its headcount to 150 people. Uberflip also took over SnapApp’s Boston office, and noted its efforts to expand its enterprise clientele globally.
“Despite yesterday’s setback, our mission and vision to help companies tell their story better through personalized content experiences has never been more important,” wrote Schwartz. “Especially in these economic conditions.”
Uberflip joins the ever-growing list of tech companies making layoffs after significantly scaling their teams during the positive economic environment of the past couple of years. Layoffs.fyi puts the number of employees affected by the tech downturn at 64,518 employees across 467 companies so far this year. Tech company layoffs are becoming almost a daily occurrence, and in Canada recent reductions include RenoRun, Shopify, Wealthsimple, Clearco, Unbounce, Coinsquare, Ritual, and Bonsai.