CloudKitchens, the startup founded by former Uber CEO Travis Kalanick, is making some changes in order to get closer to profitability. One of these changes includes downsizing its corporate recruiting department.
On November 1st, employees on the recruiting team were asked to attend an impromptu Zoom meeting where they were told that they would be laid off. David Tunna, head of recruiting, read from a script and said that Kalanick’s goal is for CloudKitchens to be profitable next year.
According to Business Insider, the layoffs impacted an estimated 30 people in CloudKitchen’s recruiting division. Another person, who is currently employed by CloudKitchens, confirmed that job cuts have taken place. Both people asked not to be identified when discussing private matters.
Many startups, including CloudKitchens, are struggling as private market valuations plunge. This puts pressure on these businesses to save money by cutting employees. The news makes it clear that CloudKitchens is feeling the strain to perform well in a difficult economy.
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