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San Francisco Software Startup Zeplin Laying Off One-Third of Employees

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Zeplin, a software startup based in San Francisco, has carried out a workforce reduction by laying off approximately 35% of its employees, which amounts to 37 staff members, as confirmed by a former employee.

Established in 2014, Zeplin provides a collaborative tool tailored for designers, engineers, and product managers. The company’s tool facilitates seamless collaboration among these professionals to enhance their workflow efficiency.

Although Zeplin’s CEO Pelin Kenez and the company did not provide an official comment, reports indicate that impacted employees were informed about the layoffs through a calendar invite following the company’s regular all-hands meeting.

The layoffs affected multiple departments, including sales, marketing, design, product, support, and human resources. The reduction in workforce comes amidst the company’s efforts to navigate challenges posed by the competitive landscape and fundraising difficulties in the post-pandemic environment.

Zeplin participated in the Y Combinator accelerator in 2015, leading its co-founders to move from Istanbul to the San Francisco Bay Area. The startup’s decision to downsize is partially attributed to intensifying competition from other collaborative design tools like Figma, along with a reported loss of customers.

The software industry has seen several companies resort to workforce reductions to adapt to changing market dynamics and financial constraints, as the landscape continues to evolve in the wake of the pandemic.

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