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Layoffs

Hats off at Fanatics Tampa distribution center

by LewDiscuss

Sports apparel giant Fanatics is announcing it will shutter its Oak Creek distribution center next year and shift the work to a newer, “more advanced” Tampa facility. The warehouse came with Fanatics’ 2017 Majestic acquisition; now it’s being written off as not up to the company’s latest “scale and innovation” story. Layoffs start March 1 and run through July 31, with workers offered severance, job fairs, and the chance to apply for roles at other Fanatics sites.

Source · Louis Llovio, Jacksonville Daily Record
Fanatics closing facility near Tampa, laying off 286 employees
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Layoffs · Mergers and Acquisitions

Days after laying off 10%, Vimeo acquired for $1.38 billion

by LewDiscuss

Just one week after CEO Philip Moyer took to Linkedin to spin the company’s decision to axe 10% of its workforce, Vimeo is being sold off. The struggling video platform is getting scooped up by European app developer Bending Spoons in an all-cash deal valued at $1.38 billion.

On paper, the acquisition looks rich: a 70% premium to Vimeo’s battered stock price. But investors who bought into the hype at its 2021 IPO won’t be celebrating. Even with today’s 60% pop, shares are still down nearly 85% from their debut.

For laid-off employees and long-suffering shareholders, the sale feels less like a comeback story and more like the last gasp of a once-hyped platform that never lived up to its promise.

In its article about the acquisition, TechCrunch points out why Vimeo employees shouldn’t be popping champagne for their salvation. Bending Spoons’ playbook is simple—buy broken companies (see: Evernote, WeTransfer) and then slash jobs and features until there’s nothing left but a logo.

Filed underBending SpoonsVimeo
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Layoffs

Scope3 snipes an undisclosed number

by LewDiscuss

This company has been in our sights for awhile… Carbon emissions auditor digital advertising middleman Scope3 is laying off an unknown number of employees, and a few are leaving of their own accord according to Adweek.

On the same day the news broke, LinkedIn inflencer company CEO, Brian O’Kelley, took to LinkedIn to post about broken demos and one of his new commercial hires (Archive)…

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Layoffs

Rivian sheds 200 in run-up to new car’s launch next year

by LewDiscuss

With a $7,500 tax credit set to expire this month and before the launch of its newer, cheaper SUV (the R2), Rivian is axing 200 employees (~1.5% of its workforce). This is on the heels of a quarter that saw the company lose 1.1 billion, a tremendous acceleration of the $650mm that it burned the quarter before that (and the $660mm the quarter before that). Riv says it has enough cash to see it through to the launch of the R2 in the first half of next year and with 7 bil in the bank, they may be right… for now.

Source · Ryan Felton, The Wall Street Journal
EV Maker Rivian Lays Off Workers as It Preps Launch of Cheaper SUV
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Bankruptcies

Kyte shuts down after sinking $550+ million

by LewDiscuss

Rental car company sputters? Kyte falls out of the sky? What kind of metaphor should I have used to describe the spectacular bust of a company once touted itself as the next Hertz?

As tempting as some NY Post wordplay could have been, the amount of cash that they burned through was just too large to not put in the title.

Oh well. Kyte is now floating its way to the great airport parking lot in the sky.

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Boardroom intrigue

Super Micro threatened with Nasdaq de-listing

by Lew1 comment

Knives falls fast. Last night Super Micro was notified that it faces Nasdaq de-listing if it does not submit a “compliance plan.” That should be easy, they can just tack it on to the earnings report that they must be furiously working on with their brand new auditor…

Source · Muslim Farooque, Yahoo Finance
Super Micro Shares Plummet as Nasdaq Delisting Looms
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Layoffs

Miro slashes workforce by 275

by LewDiscuss

Online whiteboarding tool Mira is dry-erasing 275 people from its workforce (18% of total) according to The Information. The company’s last valuation was 17.5 bil and has an annual recurring revenue of over $500 million.

In an internal memo, CEO Andrey Khusid had this to say:

“Our internal organizations have become too complex, we have too many layers, some duplications in roles, and candidly, we’re not set up to execute on our strategy with the speed and flexibility that success will require.”

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Bad Forecasts

Super Micro blasted by their auditors on the way out

by Lew2 comments

Wow. In the strongest statement I’ve seen in a long time by an auditor, Ernst and Young has resigned as Super Micro Computer’s auditing firm saying that it is “unwilling to be associated with the financial statements prepared by management.”

This happens just six days ahead of their earnings November 5, which the company has reiterated will still take place.

Filed underSuper Micro
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