In a shocking move, tech startup Frontdesk laid off its entire 200-person workforce during a brief two-minute Google Meet call. This move has made it the first tech startup to lay off employees in 2024.
The layoffs included full-time, part-time workers, and contractors, pushing the proptech startup to the brink of shutting down, according to TechCrunch.
Frontdesk CEO Jesse DePinto informed employees of the company's decision, revealing plans to file for a state receivership as an alternative to bankruptcy. The startup, founded in 2017, managed over 1,000 furnished apartments across the US.
Despite having raised $26 million from investors like JetBlue Ventures, Veritas Investments, and Sand Hill Angels, Frontdesk's attempt to secure additional capital failed.
The startup was seemingly optimistic about fundraising, and had posted job openings, including a chief of staff role, on LinkedIn just two months ago.
This move adds to the trend of tech companies worldwide, including startups, laying off over 425,000 employees in the last two years. According to Business Insider, India alone witnessed more than 36,000 job cuts in the same period.
In 2023, approximately 2.6 lakh employees were laid off in the global technology and startup sector, reflecting the ongoing impact of global macroeconomic conditions. The wave of layoffs continues, affecting both big Tech firms and startups across various domains.
