SeekOut, a Seattle-based recruiting software startup, recently announced layoffs for the second time in eight months, letting go of 30% of its workforce. This comes after a previous layoff of 7% of staff last October. SeekOut, founded in 2017, provides software used by over 1,000 companies for recruiting purposes, gathering data on potential candidates from various sources and featuring diversity filters. The company had reached a valuation of $1.2 billion in 2022, with a significant increase in annual recurring revenue, but the tech downturn in 2022 has led to a decrease in demand for its services.
The tech industry has seen a wave of layoffs in recent years, with nearly 84,000 employees laid off by nearly 300 tech companies so far in 2022. Last year, the industry experienced a similar trend, with a quarter million tech workers losing their jobs due to a tightened venture capital market and increased interest rates. SeekOut is not alone in its layoffs, as other tech giants like Amazon and Google have also reduced their workforces. The current global slowdown in hiring has affected companies like SeekOut, leading to a decrease in the demand for their services and ultimately resulting in layoffs.
SeekOut CEO Anoop Gupta, a former technical assistant to Bill Gates and Microsoft executive, leads a team of experienced co-founders, including Aravind Bala, Vikas Manocha, and John Tippett, who all have backgrounds at Microsoft. The company’s former CMO, Stephanie Camp, left in March to join Zendesk. SeekOut’s notable investors include Tiger Global, Madrona, and Mayfield, showcasing the high profile support the company has garnered. Despite the recent layoffs, SeekOut continues to provide its software to companies looking to enhance their recruiting process, utilizing data-driven tools and diversity filters to ensure a comprehensive approach to talent acquisition.
The layoffs at SeekOut reflect a larger trend in the tech industry, where companies are facing challenges due to market conditions and reduced hiring activity. SeekOut’s focus on providing recruiting software to companies looking to streamline their talent acquisition process has been impacted by the current economic climate and decreased demand for hiring services. The company’s valuation and revenue growth prior to the tech downturn in 2022 had positioned it as a successful unicorn startup in Seattle, but the recent layoffs have highlighted the challenges faced by companies in the current market environment.
As SeekOut navigates the impact of the layoffs and adjusts its workforce, the company remains committed to providing innovative recruiting solutions to its customer base. The experience and expertise of its leadership team, including CEO Anoop Gupta, will be instrumental in guiding the company through this challenging period. With the continued support of its investors and a focus on adapting to changing market conditions, SeekOut will likely emerge from this period of transition with a renewed focus on providing valuable recruiting software solutions to its clients. Despite the current challenges, SeekOut’s track record and commitment to innovation position it well for future growth and success in the competitive recruiting software market.
