Don't let the stock market fool you. This was a brutal & sad week in tech. A sustained wave of layoffs rolled across public companies and startups alike: Groupon cut roughly 2,800 roles (about 40% of its workforce), Opendoor eliminated ~600 positions (35%), The RealReal shed 235 jobs (15%), GoPro reduced 200 staff (20%), Carta trimmed 161 (16%), Envoy let go 58 people (30%) and VCSO pared back roughly 45 roles (30%). These cuts span marketplaces, hardware, real-estate tech and enterprise services. For employees, founders and investors this is a stark reminder the hiring boom is over and priorities have shifted back to profitability and runway.
This Week's Brutal Layoff Wave in Tech
Don't let the stock market fool you. This was a brutal & sad week in tech. A sustained wave of layoffs rolled across public companies and startups alike: Groupon cut roughly 2,800 roles (about 40% of its workforce), Opendoor eliminated ~600 positions (35%), The RealReal shed 235 jobs (15%), GoPro reduced 200 staff (20%), Carta trimmed 161 (16%), Envoy let go 58 people (30%) and VCSO pared back roughly 45 roles (30%). These cuts span marketplaces, hardware, real-estate tech and enterprise services. For employees, founders and investors this is a stark reminder the hiring boom is over and priorities have shifted back to profitability and runway.
Biggest Cuts: Groupon, Toast, Yelp, Eventbrite and Zume
Some of the biggest, most headline-grabbing reductions hit legacy consumer platforms and service-oriented businesses. Groupon’s roughly 2,800 layoffs (≈40%) stand out as an extreme retrenchment for the coupon pioneer. Restaurant-focused SaaS and point-of-sale firm Toast announced a severe cut of about 1,300 people , roughly half its team , underscoring the pressure on hospitality tech. Yelp reduced roughly 1,000 roles (~17%) as ad demand softens, while Eventbrite let go about 500 employees (≈45%), showing live events are still unevenly recovering. Zume, the capital-intensive food robotics startup, cut roughly 200 roles (≈67%), a reminder of how quickly burn can outpace funding.
Consumer Product & Resale Hits: Opendoor, The RealReal, GoPro, Mejuri
Consumer product and resale companies were also hit. Opendoor , the iBuyer that grew fast during hot housing markets , cut around 600 positions (≈35%), signaling stress in the home-flipping model as sales slow and financing tightens. The RealReal reduced staff by about 235 people (15%), reflecting softer discretionary spending in resale luxury. GoPro, which depends on lumpier hardware cycles and consumer upgrades, trimmed roughly 200 roles (20%). Smaller direct-to-consumer brands also tightened up: Mejuri cut about 36 people (15%), showing that even boutique fashion and jewelry names must pare costs when growth stalls.
Mid-Stage Tech & Enterprise: Carta, Envoy, VSCO and More
Mid-stage and enterprise startups are pruning to extend runway. Carta cut about 161 people (16%), Envoy trimmed roughly 58 roles (30%) and VCSO shed around 45 (30%). Recruiting platform Lever reduced ~109 positions (40%) as hiring demand softens. Compass eliminated approximately 375 roles (15%). Challenger bank Monzo reportedly cut roughly 165 jobs (exact share unclear), Neon trimmed about 70 (10%), and OneTrust narrowed about 150 roles (10%). Even deep-tech and analytics names weren’t spared: Zoox cut ~100 (10%) and Domo about 90 (10%). These moves reflect a pivot from growth-at-all-costs to disciplined cost management.
Why It's Happening: Funding, Rates, and Overhang
Several forces converged to produce this wave of cuts. Higher interest rates and a tougher fundraising environment have made cheap growth capital scarce, forcing startups to prioritize runway and profitability. Many companies scaled aggressively during the pandemic hiring boom and now face slower demand, softer revenue and mounting cash constraints. Public-market valuation volatility removes cushion for public names, and an increased focus on unit economics has boards pushing for immediate cost discipline. Automation and efficiency improvements, including AI, also reshape skills needs. The end result: a broad reset from growth-at-all-costs to sustainable, capital-efficient business models.
What To Do Now: Advice for Employees, Founders and Investors
For workers, founders and investors there are practical next steps. Employees should update resumes, check severance and benefits, and prioritize networking and referrals; consider contract work while searching for full-time roles. Review stock option terms and projected liquidity , equity is often illiquid during downturns. Founders should cut nonessential spend, extend runway, and communicate transparently with teams. Investors will focus more on metrics and cash management. Finally, prioritize mental health: layoffs are emotionally draining, so rely on community resources, mentorship and time for recovery as you plan your next move.