SeekOut, a recruiting software startup based in the Seattle area, recently underwent its second round of layoffs in the past eight months. The company, which raised $115 million in 2022, cut 30% of its workforce, as reported by TechCrunch. SeekOut had previously laid off 7% of its employees in October and had around 200 staff members at the time. Despite these layoffs, SeekOut’s software is still utilized by over 1,000 companies for recruiting purposes. The platform gathers data on millions of potential candidates from various sources, including GitHub and published papers, and also includes diversity filters.
Founded in 2017, SeekOut achieved a valuation of $1.2 billion in 2022, classifying it as a “unicorn” startup in Seattle. The company reported a significant increase in annual recurring revenue over the previous nine months, ranging from $25 to $50 million. However, the company may be facing challenges due to the tech downturn that began later in 2022, leading to reduced hiring and potential decreased demand for the recruiting software offered by SeekOut. Other tech companies, including Indeed, have also experienced workforce reductions in response to the global hiring slowdown.
SeekOut’s CEO and co-founder, Anoop Gupta, previously served as a technical assistant to Bill Gates and led Microsoft’s Unified Communications Group. He was recognized as CEO of the Year at the 2022 GeekWire Awards. Gupta’s co-founders include Aravind Bala, the company’s CTO who worked on products like Bing and Office at Microsoft, as well as Vikas Manocha and John Tippett, who also have Microsoft backgrounds. The company’s former chief marketing officer, Stephanie Camp, departed in March and now holds a VP position at Zendesk. SeekOut has received investments from prominent firms such as Tiger Global, Madrona, and Mayfield.
The tech job market has seen significant disruptions, with numerous layoffs and challenges for experienced workers seeking new employment opportunities. Layoffs.fyi reported that nearly 300 tech companies have laid off over 84,000 employees this year. In the previous year, approximately 250,000 tech workers were laid off due to factors such as a constrained venture capital market and rising interest rates. Major tech companies like Amazon and Google have also conducted layoffs. SeekOut’s workforce reductions are part of a larger trend impacting the tech industry as companies adjust to changing market conditions and economic challenges.
The impact of the layoffs at SeekOut reflects broader trends in the tech sector, where companies are reassessing their hiring needs and making adjustments to their workforces in response to market conditions. The ongoing flux in the tech job market has made it challenging for experienced workers to secure new positions. SeekOut’s recent layoffs have raised questions about the company’s future trajectory and ability to navigate the evolving landscape of the recruiting software market. As a high-profile startup in Seattle, SeekOut faces the dual challenges of maintaining its competitive edge in a competitive industry while also managing the impact of workforce reductions on its operations and growth prospects.
