Hubilo, an online and offline event management platform, has now laid off 35% of its workforce, or 115 employees, across all divisions, as it restructures its business to focus on the mid-market segment, rather than small businesses (SMBs) and individual organizers, according to people familiar with the developments.
The cost-cutting effort comes after the Lightspeed-backed startup let off 12% of its workforce, or approximately 30 people, in July last year as demand for physical events increased. The company believes that focusing on the mid-market group will result in larger ticket sizes, as compared to SMBs and individuals, who have lower purchasing power.
Employees who are affected will not serve their notice period and will instead receive 1.5 times their severance compensation, as well as outplacement chances and other benefits, according to the source mentioned above.
During the Covid years of 2020 and 2021, the company over-hired and over-estimated its growth potential, but demand continued to fall through 2022, forcing Hubilo to become a leaner startup.
Hubilo did not respond to FE’s inquiries concerning the layoffs.
After laying off 115 people, the San Francisco and Bengaluru-based company is said to have stretched its runway to 72 months, up from 54 months previously.
The business will wait to see how the new strategy plays out in the coming months before hiring individuals, particularly in sales and marketing. According to one of the individuals described above, Hubilo was not aiming to close business just yet, but rather to acquire smaller companies who may assist the company attain its goals faster.
Hubilo has so far raised more than $150 million from investors such as Alkeon Capital Management.