Thumbtack lays off 250 employees (TechCrunch, March 30, 2020)

Summary

A TechCrunch article by Anthony Ha reporting that Thumbtack CEO Marco Zappacosta announced in a blog post that the company has laid off 250 employees. It says the business has fallen 61% in San Francisco, 55% in Detroit and 50% in New York City, and quotes Zappacosta that no business can sustain prolonged revenue declines of 40%+ without making radical changes. The listed changes are reduced marketing, a hiring freeze and 25% salary reductions for executives, with Zappacosta taking no salary. The article says laid off workers will receive severance with “cash and equity components” and notes that Thumbtack raised a $150 million round of funding last year.

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Full text

Local services marketplace Thumbtack lays off 250 employees

Thumbtack CEO Marco Zappacosta announced in a blog post today that the company has laid off 250 employees.

Much has been written about the impact that COVID-19 and the resulting social distancing/shelter in place measures are having on small businesses (and the steps that internet platforms like Facebook and Yelp — which, after all, make money from small businesses advertising — are taking to help).

Similarly, Zappacosta said the local services that Thumbtack showcases in its marketplace are also seeing anything from a “dramatic decline” to an “outright collapse.” Apparently the company’s business has fallen 61% in San Francisco, 55% in Detroit and 50% in New York City.

Thumbtack raised a $150 million round of funding last year, but Zappacosta said, “No business operates with enough of a buffer to sustain prolonged revenue declines of 40%+ without making radical changes.”

Those changes include reduced marketing, a hiring freeze and 25% salary reductions for executives. (Zappacosta said he will not take any salary at all, starting today.) And it also includes big layoffs.

Laid off workers will receive a severance package with both “cash and equity components,” Zappacosta said. He also said Thumbtack is doing what it can to help its service providers, such as “building features that support more remote work with customers — like video consults for a sink replacement that would typically be done onsite.”

Topics

coronavirus , COVID-19 , Layoffs , personnel moves , Startups , Startups , Thumbtack

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Anthony Ha

Anthony Ha is TechCrunch’s weekend editor. Previously, he worked as a tech reporter at Adweek, a senior editor at VentureBeat, a local government reporter at the Hollister Free Lance, and vice president of content at a VC firm. He lives in New York City.

You can contact or verify outreach from Anthony by emailing anthony.ha@techcrunch.com .

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