A Charlotte-based HR technology startup has eliminated jobs due to macroeconomic-related headwinds, among other factors, according to a letter from its CEO sent to employees last month.
Oyster HR Inc., 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 company announced last April that it reached a $1 billion-plus valuation after raising $150 million in Series C funding.
Since that milestone, the toll of a volatile economy created challenges for Oyster — like many other tech companies, said CEO Tony Jamous in the letter. He said Oyster's fundraise motivated the firm to "set ambitious growth targets" for revenue improvement and staff engagement. Those goals sifted into the company's models for hiring, resourcing and investment.
"In moving rapidly to align with these ambitious expectations, we became vulnerable to the seismic market changes in today’s market," Jamous said. "As a result, we have over-invested in certain areas of the business relative to the new realities of our growth trajectory."
It's unclear how many jobs were eliminated, what positions were affected and how the cuts impact Oyster's Charlotte operations. CBJ's attempt to reach an Oyster spokesperson for more information was unsuccessful. The startup is headquartered at 307 W. Tremont Ave. in South End.
The firm said it attempted several options to have a smooth transition to adequate growth. Oyster slowed down hiring, froze recruitment companywide, canceled a promotion cycle and compensation review, and carried out cost-saving measures across department budgets, programs and marketing spend, he said in the letter.
"It became clear that these measures alone would not be sufficient to protect the company in this economic downturn," Jamous said.
Jamous said the job cuts allow Oyster to have laser-like focus on productive growth, automation and customer service.
"As part of our 2023 planning, we identified where we would need to grow across Oyster in order to be successful this year and beyond, and we’ve revised our organizational structure strategy accordingly," he said.
The company plans to hire new roles in the first half of this year, and those impacted by the layoffs will have the opportunity to apply for those jobs.
"The hard truth is we don’t know when the world will exit this phase of high inflation, high interest, and a declining employment market," Jamous said. "As we begin the new year, the economic outlook remains uncertain."
