Seattle-based sales software company Highspot has laid off about 10% of its headcount, the company confirmed to the Business Journal on Feb. 2.
A Highspot spokesperson said roughly 100 people were impacted, leaving 950 people at the company. The layoffs come after Highspot raised $200 million in 2021 and $248 million in January 2022, when it hit a valuation of $3.5 billion.
“We must confront the economic reality and reduce headcount to steward our company to operate more efficiently while continuing to invest in strategic areas, such as artificial intelligence, product innovation and global expansion," Robert Wahbe, co-founder and CEO of Highspot, said in a statement to the Business Journal. "Our first priority is ensuring the people impacted have the time and resources to find new roles. For the great people we’re losing, we’re providing months of severance and insurance, as well as job placement support and mental health services.”
As venture capital activity has tapered off over the past 12 months, even companies valued at more than $1 billion, often dubbed unicorns, are looking to cut costs and make the most of their funding.
Multiple Seattle-area unicorns have laid off employees recently. Seattle-based interviewing startup Karat laid off 47 employees in January. Bellevue-based contract software company Icertis, meanwhile, laid off employees in January but didn't say how many people were impacted or how many remain after the cuts.
Highspot announced in January its expansion into Canada with a new office in Vancouver, British Columbia. The company had about 10 people in Canada as of January, but Highspot planned to have more than 40 people in the country with most in British Columbia.
According to the Highspot spokesperson, the company still plans to have more than 40 employees in Canada. The spokesperson added the cuts affected all departments and help with costs and efficiency.
Highspot was founded in 2012. The company's technology helps sales reps with content management, training and guidance. Its clients include Aetna and Staples. Last month, Highspot confirmed it had downsized its physical footprint at its Belltown headquarters at 2211 Elliott Ave. through subleases, but the company still had significant space on two full floors, down from five floors at the time of its $248 million raise in January 2022.
