KiwiCo Inc., which offers science and engineering kits for kids, appears to have cut more than 15% of its workforce.
The Mountain View-based company laid off 34 workers June 7, Bill Onderdonk, the company's chief operating officer, told the Business Journal. Onderdonk declined to say how many employees KiwiCo had before or after the cuts. But PitchBook Data reported the startup had 201 workers as of May 27, meaning the layoffs would represent about 17% of KiwiCo's employee base.
"This action was driven by a need to better align the company for the future — particularly as we navigate these current uncertain macroeconomic conditions," Onderdonk told the Business Journal. "We do not anticipate any additional layoffs."
Among those laid off was Lindsey Colvin, previously a publishing program manager at KiwiCo, according to her LinkedIn page.
"Yesterday, KiwiCo reduced its workforce ... and sadly, I was among them," Colvin said in a LinkedIn post a week ago. "I have never worked with a more talented, kind, and inspiring group of people, and losing them as my colleagues will undoubtedly be the most difficult part of this transition — it's the end of an era."
Last week, the Business Journal honored KiwiCo CEO Sandra Oh Lin as one of its 2022 Woman of Influence.
Co-founded in 2011 by Lin, KiwiCo has raised $15 million in venture funding, according to PitchBook Data. Its most recent deal was a $3 million A round in 2015, according to PitchBook.
In 2019, Lin told The New York Times she had turned down additional venture funding, saying she didn't see it as necessary. At the time, KiwiCo was profitable and had posted nearly $100 million in sales the year before, she told The Times.
"We are aggressive about growth, but we are not a company that chases growth at all costs," Lin told The Times. "We want to build a company that lasts."
Amid an uncertain economy, rising interest rates and a stock market sell-off that has spooked investors, a growing number of tech and venture-backed companies have been cutting jobs. Tesla Inc. is cutting 10% of its salaried workforce, CEO Elon Musk said Tuesday, confirming earlier reports. Netflix Inc. is reportedly planning a second round of layoffs this week after cutting 150 jobs last month. San Jose-based cybersecurity startup Lacework Inc. cut 20% of its staff last month.
The layoffs come as prominent leaders in the venture industry have cautioned to be wary of tough times ahead. Sequoia Capital recently warned executives of its portfolio companies of an impending economic slowdown and advised them to conserve cash.
