Minneapolis food-delivery startup Foodsby said Wednesday that it was forced to significantly reduce its workforce after struggling with restaurant closures related to the coronavirus outbreak.
Foodsby CEO Ben Cattoor said in a statement that the company decided to make the cuts after exhausting all other options, which included Cattoor forgoing his salary for the foreseeable future. Executive team members also took pay cuts. Cattoor added that he hoped the layoffs will be temporary, and that Foodsby would consider hiring back employees in the future.
"Our business only thrives when restaurants thrive," Cattoor said. "And right now, restaurants in every community are hurting."
Foodsby delivers restaurant foods to office buildings. Currently, many Minnesota restaurants are closed or are operating at reduced capacities because of the COVID-19 outbreak.
Foodsby did not say how many people were affected by the layoffs. Posts from employees on LinkedIn say that about two-thirds of the workforce was affected. The company has 158 employees listed on LinkedIn.
Prior to this, Foodsby had been growing. In 2018, the company raised $13.5 million in a round led by Piper Jaffray Cos.' merchant banking business. It also expanded its leadership team and moved into a large office in Minneapolis' Baker Center.
Cattoor added in his statement that he hopes people do what they can to support local restaurants during this time. He also asked companies that are hiring right now to reach out to Foodsby so they can help laid off employees find work.
"My hope is that our country and the world will overcome the effects of this virus, people will return to life as we knew it and we'll soon be in a place where we can hire so many of these talented individuals back," Cattoor said.
