Virtual events platform Hopin has laid off 29% of its staff in a second round of layoffs this year, according to news reports, just a week after Bizzabo also announced it was also reducing its headcount by almost a third.
Founded in 2019, Hopin was worth $7.8 billion and had more than 1,000 employees at its peak last summer, following a spate of acquisitions. But growth in virtual event platforms has slowed since the easing of Covid restrictions and return to live events, as well as tough economic conditions. The latest cuts come just four months after Hopin let another 12% of its staff go.
“We’ve made the very difficult decision to reduce our workforce given the current macroeconomic climate and need for our events product to move forward efficiently,” said a Hopin spokesperson.
“While we took preventative measures before looking at a more significant restructure, it became necessary to simplify our events business and supporting operations to build a profitable and sustainable company.”
The news comes just a week after Bizzabo revealed that it was reorganising and reducing headcount by close to 30%. The company’s three founders said in a joint statement: “This was a difficult decision, but ultimately, it is the right one for Bizzabo’s employees, customers, and shareholders. Following the swift economic downturn, like so many companies, we’ve had to adjust our strategy to prioritise financial efficiency to continue delivering on our mission to unleash the power of professional events to create impactful and rewarding experiences.
“Over the past two years, we’ve made several acquisitions and significant investments to advance Bizzabo’s products. These acquired technologies have been successfully integrated into the Event Experience Operating System. Today, we are reorganising our team to align our business strategy to what the market and our customers need from us moving forward.”
Bizzabo has to date raised close to $200m, with the bulk ($138m) coming from a Series E round of financing in December 2020. Last summer, it opened a London office to support its European expansion.
The company’s founders said they were committed to helping affected staff find new opportunities and remain “more confident than ever in the future of Bizzabo and the events industry as a whole”.