Miami 'unicorn' startup Reef Technology is laying off 5% of its global workforce as it focuses on profitability.
The technology company plans to double down on its parking and ghost kitchen businesses in order to boost profits and productivity, CEO Ari Ojalvo wrote in a letter to employees last week.
"This move proved to be timely and necessary as we observe the current state of the economy," the letter said.
The layoffs will affect about 750 employees in the field and at Reef's corporate headquarters.
Founded in 2013 as ParkJockey, Reef has long used Miami as a testing ground. The company provides hardware, software and management services to transform its network of 4,500 parking lots into neighborhood delivery hubs for local businesses.
South Florida was one of the first locations for Reef Kitchens, a delivery-only restaurant model (also known as ghost kitchens) that gained more popularity during the Covid-19 pandemic. It raised $700 million in venture capital in late 2020 to fuel its global expansion, bringing its total funding to $1.5 billion.
Reef has explored using its parking lots for health clinics, retail stores and air taxi take-off and landing sites. It's unclear how the company's layoffs will affect those verticals.
Reef is not the only prominent tech firm to announce layoffs.
Last week, several high-profile companies – including Robinhood, Cameo and On Deck – reduced their employee counts in cost-cutting moves as startup valuations decline and venture capital activity slows after a record-breaking 2021.
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