Seattle-area used items market OfferUp is conducting one other spherical of layoffs because it seeks to simplify its enterprise and get again to specializing in the native user-to-user expertise.
In a memo to workers on Wednesday (in full beneath), CEO Todd Dunlap outlined deliberate modifications that included downplaying transport as an providing; modernizing the OfferUp app; growing advertising spend; and consolidating native enterprise choices.
“As we implement an easier construction with fewer choices, we want fewer individuals to function,” Dunlap wrote. “And if we’re going to keep up profitability whereas investing extra in development, we have to unencumber money move.”
The corporate didn’t disclose the variety of staff affected or the variety of remaining workers. OfferUp has 435 staff, in accordance with LinkedIn.
The layoffs come lower than a 12 months after OfferUp cut 22% of its staff last December, in a transfer the place Dunlap cited macroeconomic traits comparable to programmatic advert charges that affected a number of the firm’s income strains.
Based in 2011, OfferUp competes in opposition to Craigslist, eBay, Fb and different marketplaces the place customers purchase and promote items. The corporate says it facilitates 30 million transactions on its platform yearly and is at the moment ranked No. 24 on the GeekWire 200, our index of Pacific Northwest startups. It generates income partly by charging sellers for premium options and broader attain.
Dunlap, a former exec at Xbox and Reserving.com, took over for OfferUp from founder and former CEO Nick Huzar in 2021. Huzar now leads EV charging startup Juicer Vitality and is co-founder of Gone.com, a logistics-driven market reimagining the secondhand items financial system.
Learn Dunlap’s full memo to OfferUp workers:
Group,
In the present day we made modifications no chief needs to make. Earlier this morning, I let a few of our colleagues know their roles have been eradicated. For everybody who remains to be with OfferUp, I need to clarify why we did this, how we supported these leaving, and what comes subsequent for us.
Why we made this resolution
We’re resetting the corporate to be extra targeted on reaching and serving the native communities that depend on OfferUp and that helped make OfferUp what it’s at the moment. The work within the final 12 months has offered us with vital sign for just a few necessary rules:
— Our energy is in native;
— We will attain native customers and drive engagement with compelling advertising in a brand new mixture of channels;
— Native companies might be an necessary a part of our platform, however we should be considerate concerning the steadiness between enterprise choices and the core user-to-user interactions.
As a response to this sign, we’re taking a number of steps to embrace these rules:
— We’re deprecating our transport providing so as to present a extra targeted and particular native expertise;
— We’re exploring methods to modernize the app expertise to fulfill at the moment’s expectations;
— We’re bolstering the capabilities of our advertising workforce, and we intend to considerably enhance our advertising spend to make the most of the chance to achieve customers in new methods;
— We’re consolidating our native enterprise choices into one group to supply a cohesive technique that permits auto sellers, storefronts, service suppliers, employers, and landlords to thrive and supply worth to our native customers.
These rules led to the choice to cut back our headcount for 2 causes: (1) as we implement an easier construction with fewer choices, we want fewer individuals to function, and (2) if we’re going to keep up profitability whereas investing extra in development, we have to unencumber money move.
Our new construction additionally necessitates a brand new manner of working. At coronary heart, we’re a startup—albeit an older, wiser one. Within the weeks forward, we are going to lean right into a leaner working mannequin constructed on clear priorities, shut collaboration, and shared decision-making rules. I’m energized by what this shift can unlock for us, and I hope you can be, too.
What you’ll be able to count on subsequent
— Tomorrow’s all-team: I’ll stroll by way of the plan, modifications to my management workforce, and the way we’ll measure progress
— Group-specific follow-ups: Leaders will convene their groups to make clear focus and possession, and we’ll comply with up with clear roadmaps that line up throughout the org
— Help for groups: We’ll work collectively to outline clear targets, make sooner selections, and minimize inefficient processes so you may get time again for constructing
Our departing colleagues
I need to convey our deep gratitude to our departing teammates. They’ve made many significant contributions to our product, our enterprise, and our group, and we now have tried to honor these contributions with assist by way of this transition:
— Severance – We’re offering severance in an quantity equal to 10 weeks, plus extra quantities for tenure over 5 years.
— Healthcare – We’ll cowl the total price of COBRA protection by way of the tip of the 12 months.
— Outplacement Providers – Our departing colleagues could have entry to profession companies by way of an organization that gives profession transition and job placement companies.
— Laptops – Our colleagues will preserve their OfferUp-issued computer systems for free of charge.
For many of these impacted, at the moment is their final day at OfferUp. We’ve got requested just a few teammates to remain on to assist groups transition over the following few months. Please be a part of me in extending thanks and assist to all of those colleagues within the days forward.
I do know it is a troublesome day and the work forward might be onerous, however it’s the appropriate work. OfferUp belongs on the earth. I consider in that, and I consider on this workforce. A world of native alternative awaits.
Wanting ahead to spending time collectively tomorrow—
Todd
