Substack is the newest tech firm to announce layoffs, with the corporate’s CEO Chris Best tweeting on Wednesday that he’s letting 13 staff go. According to Axios, that’s round 14 % of Substack’s workforce. In his letter and follow-up tweets, Best cites “market conditions” as the rationale behind the layoffs.
He additionally admits that the transfer could also be a shock to some workers. “Not so long ago, I told you all that our plan was to grow the team and not do layoffs,” he says, additionally noting that the corporate is “still hiring for specific key roles” and has cash saved. However, Best says that the corporate wants to alter techniques, because it could possibly be dealing with “an extended period” the place the economic system goes from unhealthy to worse. He says that the layoffs are one in every of a number of adjustments the corporate has made to verify it’s in “a strong financial position.”
The people we’re saying goodbye to immediately are all proficient, nice people who care deeply about serving to readers and writers. It hurts to allow them to go. We’ll miss them.
— Chris Best (@cjgbest) June 29, 2022
According to The New York Times, a number of the workers laid off had been concerned in human sources and author assist. The report additionally says that Substack lately halted efforts to safe funding from traders, however that its income remains to be rising.
In April, Substack confronted a minor controversy round its hiring efforts when its vice chairman of communications tweeted a hiring link whereas noting a selected sort of worker she stated the corporate didn’t need. “If you’re a Twitter employee who’s considering resigning because you’re worried about Elon Musk pushing for less regulated speech… please do not come work here,” she stated. The firm has traditionally stated that it locations a number of significance on free speech.
Substack is much from the one firm laying off a big share of its staff up to now month or two. Companies like Tesla, Netflix, Klarna, Better.com, and Cameo have all minimize jobs, as have a number of giant crypto companies.