Substack is the newest tech firm to announce layoffs, with the corporate’s CEO Chris Greatest tweeting on Wednesday that he’s letting 13 employees go. In keeping with Axios, that’s round 14 % of Substack’s workforce. In his letter and follow-up tweets, Greatest cites “market situations” as the rationale behind the layoffs.
He additionally admits that the transfer could also be a shock to some staff. “Not so way back, I instructed you all that our plan was to develop the workforce and never do layoffs,” he says, additionally noting that the corporate is “nonetheless hiring for particular key roles” and has cash saved. Nonetheless, Greatest says that the corporate wants to alter ways, because it could possibly be going through “an prolonged interval” the place the economic system goes from unhealthy to worse. He says that the layoffs are one in all a number of adjustments the corporate has made to verify it’s in “a robust monetary place.”
The folks we’re saying goodbye to in the present day are all proficient, nice individuals who care deeply about serving to readers and writers. It hurts to allow them to go. We’ll miss them.
— Chris Greatest (@cjgbest) June 29, 2022
In keeping with The New York Instances, a number of the staff laid off had been concerned in human sources and author assist. The report additionally says that Substack lately halted efforts to safe funding from buyers, however that its income remains to be rising.
In April, Substack confronted a minor controversy round its hiring efforts when its vp of communications tweeted a hiring hyperlink whereas noting a particular kind of worker she mentioned the corporate didn’t need. “For those who’re a Twitter worker who’s contemplating resigning since you’re frightened about Elon Musk pushing for much less regulated speech… please don’t come work right here,” she mentioned. The corporate has traditionally mentioned that it locations plenty of significance on free speech.
Substack is much from the one firm shedding a big share of its employees prior to now month or two. Corporations like Tesla, Netflix, Klarna, Higher.com, and Cameo have all minimize jobs, as have a number of giant crypto corporations.