The layoffs at Klaviyo signal a clear pivot away from the marketing automation platform’s earlier focus on e-commerce growth. Instead, the company is focusing on broader applications such as customer Lifecycle Management (CLM) and marketing operations management (MOM).
Klaviyo’s abrupt workforce reduction has left many workers feeling uncertain about their futures. The reduction has impacted roughly 10% of staff, raising questions about how the company plans to reinvest in its products and grow in the future. Klaviyo’s director of public relations affirmed that their focus is supporting the departing Klaviyos who made meaningful contributions to the company, but employees feel like they are being let go without much warning or explanation. This uncertainty could lead some workers to seek new opportunities, while others may fall Unable to find a new position that meets their expectations, many employees are left feeling pessimistic about the future prospects for Klaviyo.
Amidst rapid technological advancements and a swelling workforce, many tech companies are forced to make painful layoffs in order to maintain profitability. Klaviyo, one of Boston’s largest marketing platforms, announced plans to layoff 7% of its workforce in January. While the company insists that these cuts will not adversely affect customer service or delivery, it remains an unsettling trend for the tech community.
Pandemic-hit businesses have turned to email marketing as a way to better connect with customers and keep them engaged. Boston-based TechGround, which helps other businesses better capture customer cash with email triggers, predictive analytics and product recommendations, recently made its first acquisition ever by scooping up Napkin.io, a tool that gives developers a more seamless way to deploy code from their browsers. With the help of Shopify’s $100 million strategic investment, TechGround is hoping to continue its growth outside of the pandemic by bolstering its already strong owned marketing efforts.
Recognizing the uncertainty of the present and future job market, the company has decided to put a hiring freeze in place. This decision is likely to cause some dissatisfaction among already frustrated employees, who may feel that there are not enough opportunities for them to progress within the company. However, as long as there are still 65 open listings on their careers page, it seems clear that growth is still an important part of Google’s mission.
If you’re like most people, you probably think of venture capital as a way to invest in early-stage startups. But that’s not the only form of VC out there.
There’s also family and institutional venture capital, which invests in more established businesses. And then there’s growth equity, which is used to provide financial support higher up the food chain (think software companies worth more than $500 million).
Which type of VC is right for your company? That depends on a bunch of factors: what stage your business is at, what your goals are, and who is funding you.
