- TripAction, Corporate travel startup backed by Andreessen Horowitz's huge $ 2.2 billion growth fundAccording to Business Insider, the company laid off 350 divisions on Tuesday.
- According to data from startup database PitchBook, the company had more than 1,000 employees before layoffs, meaning that the layoffs affected a third of its employees.
- of start up After a funding round led by Andreessen in June, the company was valued at $ 4 billion, $ 500 million in debt financing when the travel credit card was issued on February 25.
- Once a rising star in Silicon Valley startups, TripActions business has been sharpened Stops as global businesses implement travel ban During the coronavirus pandemic, the city enforced temporary asylum orders.
- A company spokesperson confirmed that the startup is dominating spending and reducing headcount to "fit into the current climate."
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TripAction, Corporate travel startup backed by Andreessen Horowitz's huge $ 2.2 billion growth fundAccording to Business Insider, the company laid off 350 divisions on Tuesday.
According to data from startup database PitchBook, the company had more than 1,000 employees before layoffs, meaning that the layoffs affected a third of its employees.
of start upAfter a funding round led by Andreessen in June, the company was valued at $ 4 billion. $ 500 million in debt financing when the travel credit card was issued on February 25A few days ago, a major decision was announced a few days before a global coronavirus pandemic cut corporate travel.
A business spokesperson said in an interview with Business Insider: "This global health crisis is different from anything we have never seen in our lives. Our hearts are to everyone affected throughout the world, including ourselves. Customers, partners, suppliers, and employees, are deeply concerned. "Emailed the statement, in part. You can read the full instructions below.
Cuts are up to date Downsizing sweeps Silicon Valley startups With the economic impact of the coronavirus pandemic, more and more attention has been paid. Venture capitalists have begun to withdraw their aggressive investment plans while continuing with previously planned transactions, while late-stage startup founders are scrambling to make ends meet without additional cash reserves.
TripActions is particularly vulnerable to the rapidly changing economic situation, as many startups now rely heavily on business travel and the startup customer base. The startup has soared to a unicorn status in near record time and aggressively expanded into new categories such as banks, which require larger investments to generate greater returns.
TripActions provides companies with all-in-one corporate travel services, first used to book corporate travel, but eventually added services such as expense tracking and reimbursement and corporate travel cards. It provided other startups with low-cost tools that earned Silicon Valley's fame, and then larger contracts for established tech companies with seemingly endless travel budgets.
By the end of 2019, many investors are starting to prioritize startups such as TripActions Profitability outweighs growth capacity in an economic downturn. As a warning, investors saw the turmoil of fast-growing darling WeWork and the pressure it has put on SoftBank, its main supporter. Many now say that strategic shifts are prudent decisions made in response to current economic uncertainties, but not every startup has heeded the advice.
For the smallest startups, layoffs have come to Silicon Valley in droves. The catering industry bears the brunt, with home-sharing startups like Sonder, Zeus and Lyric announcing cuts this week. Even listed companies are not immune. Tech giants like Google have implemented a freeze-up policy, while new entrants like Uber have stopped recruiting new employees. Unsurprisingly, the surge in the number of newly unemployed workers in Silicon Valley has led to new forums, message boards and apps to crowdsource new jobs.
Read the full statement from TripActions:
"This global health crisis is different from anything we have never seen in our lives, and our hearts are open to everyone affected throughout the world, including our own customers, partners, suppliers and employees.
Coronaviruses have had a wide-ranging impact on the global economy. Every business is affected, including TripActions. Although we are lucky to have recently raised funds and secured debt financing, we have taken appropriate steps in our business to ensure that we serve our customers and their travelers for a long time to come.
We cut all unnecessary spending and made very difficult decisions to reduce our global workforce based on the current climate. We look forward to when the power of the global economy and business travel inevitably recovers, we can hire our colleagues to rejoin us to fulfill our mission to make our customers and users travel business effortlessly. "
Are you part of the layoffs at TripActions and would like to share your story? Contact the reporter via an encrypted messaging application with a signal of +1  625-2555 Using a non-office phone, send an email to: firstname.lastname@example.orgOr Twitter DM at @megan_hernbroth.
See also: Brex is a $ 2.6 billion credit card startup. It was only after the founders scrambled for declining valuations and venture capital uncertainties that they used their solid capital to acquire three startups