Austin-based tech company Kazoo, which makes an employee rewards and engagement platform, has laid off 35% of its workforce, the company confirmed to Inno Tuesday.
"Due to the economic uncertainty and contraction as a result of the COVID-19 pandemic, we felt it was essential to act quickly and proactively to reduce the potential risk to our business," the company said in a prepared statement. "While we are deeply disappointed to have to take these steps, given the current environment, it was necessary to ensure a promising future for the company."
Kazoo makes a platform that helps companies with performance management, employee awards, team surveys and other human resources-geared features.
It was founded in 2013 by Autumn Manning and Kenny Tomlin under the name YouEarnedIt, and in 2018 it rebranded and named Paul Pellman as CEO (and Manning left the company). It raised about $8 million in venture funding from investors including Ridge Ventures, Silverton Partners, Motley Fool and Capital Factory before raising an undisclosed private equity round from Vista Equity Partners in 2018.
The company declined to share the exact number of layoffs, what other measures it may have taken to retain employees or what kinds of benefits former employees may be getting.
"Customers will see no disruption to their service, and we remain confident in our business strategy and our plans for ongoing product innovation, customer acquisition, and long-term growth," its statement said.
Kazoo is part of a wave of companies making major staffing changes as COVID-19, the disease caused by the coronavirus, creates widespread market uncertainty. Other Austin companies reporting layoffs include SXSW, Yonder, OutboundEngine, RigUp, The Guild and DISCO.
Editor's Note: This story has been updated to note that Manning left the company after it rebranded in 2018.
