Education platform MasterClass, known for its online course offerings from celebrities like Natalie Portman, Neil deGrasse Tyson and Stephen Curry, is laying off 95 employees at its San Francisco headquarters.
The technology startup filed a public notice of a mass layoff this week the same day that CEO David Rogier announced the "hard decision" to reduce the workforce by 20% "to adapt to the worsening macro environment and get to self sustainability faster." Last spring MasterClass announced it had raised more than $475 million since its founding in 2015, at least $325 million of which arrived in Series E and F rounds announced since 2020 that fueled an aggressive expansion and hiring spree.
MasterClass joins the lengthy procession of notable tech layoffs in recent days, including Bay Area-based Netflix, Robinhood, Coinbase, PayPal and scooter startup Bird, as well as nonlocal companies Carvana and Cameo. With a recession potentially on the horizon, technology companies are looking to rapidly cut costs via layoffs and hiring freezes, and companies with venture backing are facing tighter scrutiny from investors less open in the current environment to prioritize growth over profitability.
All of MasterClass's revenue arrives from subscription fees, reports TechCrunch, and the company charges about $180 annually per subscription. The platform's high profile instructors represent a sizable up-front investment as some agreements stipulate at least $100,000 up front and at least a 30% cut of the revenue from a given class, per The Hollywood Reporter.
In 2020 we reported on the startup's $100 million Series E round, which put the company "on the path" to go public, Rogier told news outlets. A year later MasterClass announced a $225 million Series F round to fuel more hiring, increased content and international expansion.
Last year Rogier, a member of the Business Times 40 under 40, said that when stressful times arrives he tries to "recognize the hard stuff," make a plan and stay optimistic. "And a good therapist is worth every penny," he added.
