Another darling of Atlanta’s technology ecosystem has laid off employees.
Supply chain technology startup Stord, which grew into a $1.3 billion company in six years, laid off 59 people last month, according to a company spokesperson.
The layoffs were across multiple units and “part of a routine review” of employees, the spokesperson said. Stord has more than 700 employees. The startup has “an extremely strong balance sheet,” the spokesperson said.
"Stord continues to see record growth," the spokesperson said in an emailed statement.
The move comes at a tumultuous time for startups and technology companies, which have been laying off employees and freezing hiring as valuations plummet after a record year for venture capital funding. OneTrust, another unicorn, laid off almost 1,000 people. Software startup Sonar Software and marketing technology startup Terminus have also had to make cuts.
OneTrust blamed the economic climate for its layoffs. Company valuations skyrocketed during the pandemic and are now leveling out again. Companies usually don’t raise money if their valuations have dropped since their previous funding. Restructuring the business and cutting costs are ways a company may try to raise their valuations.
However, the Stord spokesperson did not say the economic climate has affected the company and declined to comment further.
“While this was a challenging decision, the company remains in an incredibly strong position as brands continue to invest in the technology and logistics solutions they need to meet customer expectations and fuel growth,” the spokesperson said.
Stord’s employee cuts come less than two months after the company raised $120 million. Much of the company’s growth comes from the need for supply chain innovation amid the Covid-19 pandemic. An increased demand for e-commerce and staffing shortages made technology more necessary to keep up with consumer expectations.
After its most recent funding round, Stord was planning to have 1,000 employees. The company seems to be still hiring toward that goal. It has almost 40 open positions on its website, many of which are in warehouse operations.
Stord’s software helps mid-market businesses manage their deliveries. The company is also expanding a physical warehouse network to compete with the efficiency of Amazon two-day delivery.
Stord was the No. 4 fastest-growing company in Atlanta in 2021, according to the Atlanta Business Chronicle. It was one of five local startups to reach unicorn status and has more than $325 million in total funding.
