Charlotte-based Oyster HR Inc. is slimming its workforce again, according to a letter from its founder and CEO sent to employees last month.
The HR technology startup laid off more employees in mid-September after eliminating jobs in January due to macroeconomic-related headwinds, among other factors. It's unclear how many employees were impacted in the latest round of jobs cuts. An Oyster representative was reached for comment but did not respond by deadline.
Oyster also trimmed its management team, expanding the responsibilities of leaders who remained with the company, CEO Tony Jamous said in the letter. Oyster, founded in 2019, is a global employment platform that enables HR leaders and companies to pay, manage, develop and care for workers, no matter their location.
The startup implemented an aggressive growth plan during its "uncharted hyper growth phase." That was prior to it becoming a $1 billion-plus valued company after closing on a $150 million Series C funding round in 2021. But as unprecedented macroeconomic-related headwinds hit the nation, a volatile economy diminished Oyster's growth expectations, according to the letter.
"To adapt to our slower than expected growth trajectory in this new market, and to accelerate our path to profitability, we pivoted to an efficient growth strategy in the second half of 2022," Jamous said.
That initiative resulted in the companywide reorganization implemented at the start of this year.
Oyster embarked on a different growth strategy for 2023, which included lowering the additional capital it needed before reaching profitability and increasing its ability to raise funding. But even with a positive impact from its previous cost-savings measures, it was not enough to keep Oyster financially secure and guarantee its survival in the future, the letter stated.
"The combination of a tighter than ever funding environment and our current growth trajectory command that we right-size Oyster immediately to reduce our cash burn," Jamous said.
Similar to its prior reorganization, the company plans to hire for new roles during the rest of this year. Those impacted by the layoffs will have the opportunity to apply for those positions. With there not being many job openings, however, Jamous said Oyster is prepared to support impacted employees "on the next step of their journey."
Affected workers' transition package includes at least 12 weeks of compensation in the form of notice, severance or some combination that meets or surpasses what they may be eligible for locally.
"While I regret that we once again find ourselves in this position, I am confident that these changes will provide the stability needed to further our mission built on top of a more financially resilient business," Jamous said.
While Oyster is based in Charlotte, the company is fully remote with employees across 70 countries.
