In a surprising turn of events, Seattle’s cloud automation and migration startup, SkyKick, has made sweeping layoffs, with 140 employees shown the door, 98 of whom were based in the U.S. The company, which has been a significant player in the cloud services sector for over a decade, targets Information Technology Services Providers (ITSPs) that aid small and medium-sized businesses in their cloud infrastructure management. The layoffs were reported on Wednesday to the Washington state Worker Adjustment and Retraining Notification (WARN) system, leaving the tech community stunned.
The brainchild of former Microsoft employees and co-CEOs Todd Schwartz and Evan Richman, SkyKick has been a beacon of success in the tech startup scene since its inception 12 years ago. The company, which garnered an impressive $130 million in funding just last year, boasts a robust workforce of over 300 employees, according to LinkedIn. However, the recent job cuts paint a different picture, raising questions about the company’s future strategy and market positioning.
SkyKick Announces Major Layoffs Amid Market Adjustments
Seattle-based cloud automation and migration company, SkyKick, recently confirmed the dismissal of a large portion of its workforce. A total of 140 employees were affected by the layoffs, with 98 of them based in the US. This significant reduction in staff was announced on Wednesday through the Washington state Worker Adjustment and Retraining Notification (WARN) system.
SkyKick’s Role in Cloud Management
SkyKick focuses on providing services to Information Technology Services Providers (ITSPs), supporting small and medium-sized businesses in managing their cloud infrastructure. This includes the migration and management of files in the cloud. Co-CEOs Todd Schwartz and Evan Richman, both former Microsoft employees, established the company 12 years ago. SkyKick has raised a considerable $130 million in funding during 2021, and according to LinkedIn, employs over 300 people.
The Layoffs and Their Impact
Despite the significant funding raised last year, the company saw a need for workforce reduction. The layoffs, representing almost half of SkyKick’s team, were implemented as a hard decision in response to current market conditions. However, the specifics of these market changes that prompted the layoffs remain unclear.
Official Statement and Future Prospects
In an official statement, co-CEO Schwartz confirmed the layoffs, saying, “SkyKick has made the tough decision to reduce our workforce to adjust to current market conditions. We are well positioned and remain steadfastly committed to ensuring our partners’ success in the cloud over the long-term.”
While the decision to lay off such a substantial number of employees is certainly a major one, SkyKick seems confident in its ability to navigate the current market conditions. It is important to note that while layoffs can be challenging, they can also provide opportunities for restructuring and streamlining operations. It will be interesting to observe how SkyKick adjusts to these changes and continues to support ITSPs in managing cloud infrastructures for small and medium-sized businesses.