Checkr, a 10-year-old startup that offers employee background checks and was last valued at $5 billion in April 2022, has announced a significant reduction in staff due to current hiring trends.
TechCrunch has exclusively learned that Checkr laid off 382 employees across all departments and levels on Tuesday. A Checkr spokesperson confirmed the layoffs in an email.
“In response to economic conditions that have impacted companies’ hiring, we made the difficult and painful decision to reduce our team. This will allow us to operate more efficiently and ensure the long-term health of our business.”
The job cuts, which affected 32% of the company’s workforce, come almost two years after Checkr’s acquisition of Inflection, the company behind GoodHire, a platform for small- and mid-sized businesses to conduct background checks. The Wall Street Journal reported the deal was worth $400 million.
Backed by renowned investors such as Durable Capital Partners, Fidelity Management & Research, Franklin Templeton, BOND, and Coatue Management, Checkr offers companies the ability to run background checks on potential employees through driving and criminal record searches and basic identity confirmation. The startup provides an online form or API integration with hiring and onboarding software, including Workable and Zenefits.
Founded in 2014, Checkr boasts customers such as Uber, Instacart, Netflix, Adecco, Airbnb, and Coinbase. By 2022, its customer base had grown to tens of thousands, ranging from small and medium businesses to Fortune 500 companies. Initially limited to Silicon Valley, the startup expanded its presence in 2016.
According to a Checkr spokesperson, the affected employees were given a minimum of 10 weeks of severance, health insurance, as well as career and mental health support. The startup did not disclose their runway or fundraising plans. To date, Checkr has raised $679 million, with the most recent round of $250 million announced in September 2021.
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