OfferUp, based in Bellevue, Washington, is laying off around 19% of its workforce, joining a growing number of software companies cutting expenditures in the face of an uncertain economy.
“We grew headcount rapidly over the past few years — at a rate that outpaced revenue growth” OfferUp CEO Todd Dunlap said in an email to employees on Tuesday.
OfferUp did not disclose the overall number of employees. LinkedIn lists just under 500 employees for the organization.
In 2022, nearly 800 technology companies laid off workers, including many with a presence in the Pacific Northwest. Amazon is reportedly laying off 10,000 corporate and tech jobs, and Seattle-area startups like Convoy and Flyhomes have also announced layoffs.
Dunlap stated in the memo that OfferUp still had “several years of runway” before opting to reduce workers. However, OfferUp’s revenue growth predictions for 2022 have not been met, and leadership has concluded that “our present cost structure is hindering us from accomplishing our goals.”
Dunlap, a former executive at Microsoft and Booking.com, took over as CEO of OfferUp last year. He succeeded founder Nick Huzar, who remains on the company’s board of directors.
OfferUp, which was founded in 2011, competes with Craigslist, eBay, Facebook, and other marketplaces where users buy and sell goods.
In March 2020, OfferUp raised $120 million and acquired rival Letgo. The company is one of the Seattle area’s unicorns, with a valuation of more than $1 billion.
With the launch of OfferUp Jobs in the company’s mobile app earlier this year, OfferUp added job listings.