A little less than a year ago, Austin startup Workrise raised $300 million in new funding. This week, the company announced it is laying off some employees.
Workrise — which has grown by linking businesses in the energy sector with needed workers — said in a March 24 announcement that it has decided to "exit verticals that no longer align with its go-forward strategy." Workrise executives couldn't immediately be reached for details on how many employees were impacted, specifics of which verticals it's discontinuing or what type of support it may be offering employees who find themselves without a job.
"This was done after careful deliberation and is a result of positions being eliminated, departments consolidated and an overall shift in growth priorities," the company stated. "This was not an easy process, but we believe this realignment is in the best interest of the company as we move forward helping skilled laborers grow their career in our core industries, including oil & gas and renewables."
Originally known as RigUp, Workrise Technologies Inc. has been one of Austin's fastest growing startups since its founding in 2014. The company first surpassed a $1 billion valuation in 2019. But in early 2020, the company laid off about a quarter of its staff, or about 120 people, when the pandemic jolted the oil and gas industry.
The company rebranded to Workrise and announced a shift to focus more on working with renewable energy providers. Then, in May of last year, it landed a $300 million series E funding round led by U.K.-based investment management firm Baillie Gifford. That came at a $2.9 billion valuation.
At the time, the company had more than 600 employees across 25 offices, with half in the Texas capital. Back in May, the company listed about 150 job openings online, with roughly 65 in Austin.
While it's unclear what type of assistance the company may provide to those laid off, there has already been a showing of support on LinkedIn, including from people who were laid off from the company in 2020. Managers at several companies, as well as recruiters, invited those laid off to consider applying for new roles with their organizations or offered to help them expand their network to find new opportunities.
"Anyone who was impacted by the reductions today at Workrise, reach out," a recruiter for tech giant Meta posted. "Don’t hesitate. We’re hiring and I’m happy to help with referrals or anything to ease transition."
