2023 has been a challenging period for the startup ecosystem in Los Angeles. Despite the city being renowned for its thriving entrepreneurial scene, with a host of promising LA startups showing immense potential, the unfortunate trend of startup layoffs has been a harsh reality.
We’ve witnessed 45 LA startups, many of which had promising futures, succumb to the economic strains of the year, resulting in massive layoffs. This phenomenon is not just a blow to the individual startups, but also a setback for the Los Angeles startup scene as a whole.
The reasons behind these layoffs vary from startup to startup, with some citing funding issues, while others point to market changes or management missteps. Regardless of the reasons, the impact on the hardworking, innovative individuals who make up these startups is profound.
Our comprehensive research for this report includes data from Layoffs.fyi, TechCrunch, and various other credible sources. Layoffs.fyi provides an ongoing record of startups that are downsizing. TechCrunch, a leading platform for technology news and analysis, also offers invaluable insights into the trends and causes behind these layoffs.
To ensure an all-encompassing perspective, we’ve also scoured numerous other lists, press releases, and news reports related to Los Angeles startup layoffs. This consolidated effort has been instrumental in obtaining a holistic understanding of the challenging scenario faced by LA startups in 2023.
This list is not exhaustive and may not include all the layoffs in the LA startup ecosystem. Many smaller startups, in particular, may not publicly announce layoffs, rendering them unnoticed in media and industry reports. Additionally, certain reductions may go unreported due to various circumstances.
LA Startup Layoffs in 2023
Here are a few notable LA startups that have been affected by layoffs in 2023:
- Magnite is a leading startup in Los Angeles that specializes in offering innovative solutions in the programmatic advertising space, transforming the way brands reach their potential customers. Layoffs
- CareerArc is a pioneering HR technology company that provides comprehensive employment solutions, empowering businesses to recruit talent effectively, and aiding job seekers in navigating their career paths efficiently. Layoffs
- 100 Thieves is a renowned LA-based lifestyle brand and gaming organization that merges esports, entertainment, and apparel to create unique experiences for gamers and audiences alike. Layoffs
- Luxury Presence is a leading real estate marketing platform based in Los Angeles, providing innovative digital solutions to real estate professionals for enhancing their online presence and optimizing customer engagement. Layoffs
- CareRev is a cutting-edge healthcare startup based in Los Angeles that offers a proprietary online platform aimed at streamlining the process of hiring healthcare professionals and effectively managing healthcare staffing needs. Layoffs
- ServiceTitan is a premier software solution for residential and commercial service businesses, enabling a host of LA-based companies to streamline operations, improve customer service, and increase sales. Layoffs
- PeerStreet is a pioneering Los Angeles-based startup offering a unique platform for investing in real estate debt, democratizing access to real estate debt investments and providing an innovative way to diversify investment portfolios. Layoffs
- EVgo is a trailblazing LA-based startup that is shaping the future of transportation by providing a state-of-the-art network of high-powered electric vehicle charging stations across the United States. Layoffs
- MeridianLink is a prominent Los Angeles startup providing innovative solutions in the financial industry, including a suite of dynamic software services that streamline and automate loan origination, new account opening, and credit reporting processes. Layoffs
- Ruggable is a revolutionary LA startup that offers machine-washable rugs, merging practicality with aesthetic appeal, and transforming the home décor industry with its innovative designs and easy-care solutions. Layoffs
- Religion of Sports is an LA-based startup, co-founded by Tom Brady, Michael Strahan, and Gotham Chopra, that is dedicated to exploring and celebrating the profound and often transcendent nature of sports. Layoffs
- Zwift is an innovative LA-based startup that combines physical exercise with video games, offering a unique, immersive, and interactive experience for fitness enthusiasts and cycling aficionados. Layoffs
- Toucan is an innovative LA-based startup that offers an immersive language learning platform, designed to facilitate the effortless and seamless integration of language learning into daily routines through an interactive browser extension. Layoffs
- Aspiration is a groundbreaking Los Angeles-based startup that offers socially-conscious and sustainable cash management services and investment products, aiming to revolutionize the financial industry with its commitment to customer empowerment and ethical practices. Layoffs
- Science 37 is an innovative Los Angeles-based startup that leverages technology to accelerate biomedical research by making clinical trials more accessible and patient-friendly. Layoffs
- Poparazzi is a unique Los Angeles-based startup that has revolutionized social media by creating a platform that encourages users to capture candid moments of others instead of self-focused content. Closed
- Autograph is a Los Angeles-based startup that leverages the power of NFTs to bring unique digital collectibles to fans, transforming the worlds of sports, entertainment, and culture. Layoffs
- Daylight is an innovative Los Angeles-based startup dedicated to transforming the world of digital finance by offering a unique neo banking platform tailored specifically to the needs of the LGBTQ+ community. Closed
- ZipRecruiter is a leading LA-based startup that offers a comprehensive online employment marketplace, connecting millions of employers and job seekers through innovative mobile, web, and email services. Layoffs
- PacketFabric is an innovative LA-based startup that provides scalable, secure, and instant connectivity solutions, revolutionizing the way organizations procure, manage, and operate their network. Layoffs
- dot.LA is a Los Angeles-based startup dedicated to providing comprehensive coverage of the technology, startup, and venture capital ecosystem in LA. Layoffs
- TrueCar is an LA-based startup that offers a comprehensive digital platform for buying and selling cars, aiming to bring transparency to the automotive retail industry by providing consumers with valuable price context and dealers with quality, ready-to-buy leads. Layoffs
- Headspace is a leading Los Angeles-based startup that offers a digital health platform, providing guided meditation resources and mindfulness training to promote mental wellbeing. Layoffs
- AvantStay is a Los Angeles-based startup revolutionizing the travel experience by offering short-term rental services with curated, design-led homes for group getaways and celebrations. Layoffs
- Lunya is an innovative Los Angeles-based startup that revolutionizes sleepwear for women by blending luxury and comfort with modern designs. Layoffs
- BlackLine is a cutting-edge Los Angeles-based startup that provides automated accounting solutions, transforming finance operations with innovative technology to ensure accuracy, visibility, and efficiency. Layoffs
- VideoAmp is a pioneering Los Angeles-based startup that offers an innovative cross-platform measurement and optimization solution, enabling advertisers and media owners to seamlessly bridge the gap between linear TV, OTT, and digital media. Layoffs
- Bird is a dynamic Los Angeles-based startup that revolutionizes urban transportation by offering electric scooter rentals, significantly contributing to a greener and more connected city infrastructure. Layoffs
- Snap is a prominent Los Angeles-based startup known for pioneering ephemeral, camera-first communication through its flagship product, Snapchat, which dramatically altered the social media landscape. Layoffs
- InvestCloud is a Los Angeles-based startup that provides digital solutions designed to revolutionize the wealth management industry, with a focus on delivering a seamless, integrated digital experience for both advisors and investors. Layoffs
- Karat Financial is an innovative Los Angeles-based startup focused on providing tailor-made financial services for creators, offering them the tools to understand, grow, and sustain their businesses. Layoffs
- Beyond Meat is a Los Angeles-based startup that is transforming the food industry by creating plant-based meat substitutes, contributing to a future where animal agriculture is no longer the norm. Layoffs
- CloudKitchen is a Los Angeles-based startup that provides commercial kitchens optimized for food delivery, revolutionizing the restaurant industry by reducing overhead costs and expanding delivery potential. Layoffs
- DwellWell is a Los Angeles-based startup that aims to transform the real estate industry by providing a platform that simplifies the home buying process and offers tailored services to ensure a smooth and stress-free journey for its users. Layoffs
- Stellar Pizza is an innovative Los Angeles-based startup that aims to revolutionize the food industry by providing a gourmet pizza experience with the convenience of online ordering and delivery. Layoffs
- HyperLoop One is a groundbreaking Los Angeles-based startup that aims to revolutionize transportation by creating ultra high-speed, direct-to-destination travel experiences through advanced magnetic levitation technology. Layoffs
- Happy Money is an innovative Los Angeles-based startup aimed at helping people pay off debt and save money, promoting financial well-being through a suite of joy-based financial tools and services. Layoffs
- Mythical Games is a forward-thinking Los Angeles-based startup that specializes in creating player-owned economies for digital games, reinventing the way communities engage with gaming experiences. Layoffs
- GoodRx is an innovative Los Angeles-based startup that is revolutionizing the healthcare industry by providing a reliable online platform for comparing prescription drug prices and finding discounts to save consumers money. Layoffs
- Boosted Commerce is an innovative Los Angeles-based startup that specializes in acquiring, investing in and scaling third-party businesses on Amazon to foster ecommerce growth and success. Layoffs
- Community.com is an innovative Los Angeles-based startup that provides a direct communication platform, enabling celebrities and brands to foster stronger relationships with their fans and customers. Layoffs
- Emotive is a Los Angeles-based startup that revolutionizes customer engagement by providing businesses with a powerful platform to automate and personalize their messaging, thereby enhancing their customer relationships. Layoffs
- Albert.com is an innovative Los Angeles-based startup that provides a personal finance app, designed to assist users with budgeting, saving, and investing, aiming to simplify and democratize financial management. Layoffs
- Replicated is a Los Angeles-based startup that provides a suite of tools designed to empower software vendors to operationalize and scale the delivery of their Kubernetes-based applications to enterprise customers in a secure and reliable way. Layoffs
- SubSpace is an innovative Los Angeles-based startup that is revolutionizing the internet by creating a dedicated network for real-time applications, thereby enhancing the performance and reliability of online experiences. Layoffs
Why Companies Don’t Report Their Layoffs
Layoffs, while unfortunate, are a common occurrence in the business world, especially within the startup ecosystem. However, not all companies are forthcoming about these events. The reasons are manifold. Often, companies avoid publicizing layoffs to maintain their public image and investor confidence.
The perception of stability is crucial in attracting potential employees and retaining existing talent, both of which could be deterred by news of layoffs. Furthermore, publicly sharing information about layoffs could provide competitors with insights into the company’s internal challenges, giving them an advantage.
Lastly, in some cases, companies may choose not to disclose layoffs to avoid creating panic among their remaining workforce, aiming to maintain morale and productivity levels.
While the startups mentioned above are some of the more well-known entities experiencing layoffs, it is important to acknowledge that this is not a comprehensive list. Many smaller startups have also been impacted.
Some of these smaller entities have requested not to be publicly associated with layoffs, while others are so small that their situations have not garnered much attention. Nonetheless, these occurrences underline the volatile nature of the startup ecosystem in Los Angeles, demonstrating that regardless of size or industry, no company is immune to economic fluctuations and operational challenges.
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