Boston-based emotional intelligence startup Cogito has reduced its workforce as the effects of the coronavirus pandemic trickle down to the startup economy.
A source told BostInno that 24 full-time employees and six contractors had been let go. The company confirmed the layoffs in a statement emailed to BostInno but declined to comment on the number of employees affected.
"It’s more important now than ever that we as leaders continue to navigate these unchartered waters with empathy and make the required moves for the economy to recover quickly," Steve Kraus, Cogito's vice president of marketing, said in the email. "We do not make these decisions lightly, and it is with an unwavering dedication to our roughly 170 employees, clients and partners, that we remain focused on our long-term growth."
Kraus did not answer questions about what departments were impacted but said Cogito had made changes "across our internal organizations and at the executive level." Kraus said that the company had also adjusted compensation and consolidated certain functions within the leadership team.
Cogito most recently raised $20 million in growth equity funding from New York Life Ventures Salesforce Ventures and Goldman Sachs Growth Equity in September. Now, it joins a growing number of Boston-area startups that have laid off workers amid the ongoing coronavirus pandemic. Those include enterprise AI unicorn DataRobot, corporate travel startup Lola.com and a number of hospitality startups.
Still, Cogito insists that its software is more essential than ever, since it is used in call centers whose agents "have had their lives disrupted."
"They are not only dealing with their own anxiety and uncertainty, but working to comfort customers who are also experiencing the same challenges," Kraus said. "Our software is helping to coach them through these tough times."
