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Tech start-ups are laying off staff but letting them keep the perks

Madeleine AchenzaNCA NewsWire
Not Supplied
Camera IconNot Supplied Credit: Supplied

Australian $1.78bn social media start-up Linktree recently sacked 17 per cent of its staff, but is doing whatever it can to ensure team members let go are well looked after amid such stressful and devastating economic times.

Co-founder and chief executive Alex Zaccaria sent an email to all staff earlier this week revealing he was “heartbroken” to announce the redundancy of around 50 staff across Linktree’s global network.

The company, which reportedly raised $US110 million ($A1578 million) in March, allows brands, artists and businesses to link to anything, from online news to concert tickets.

Departing staff will be well-looked after by Linktree, which will payout an average of 11 weeks’ pay, gift all work-from-home equipment, including Macbooks, and provide three months’ mental health support.

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Linktr.ee Founder Portraits
Camera IconLinktree co-founders (from left) Nick <span>Humphreys, Alex Zaccaria and Anthony Zaccaria. Supplied</span> Credit: Supplied

“I’m heartbroken to say goodbye to some incredible teammates today, and want to do all I can to support them,” Mr Zaccarria said.

A company-wide mental health day is being hosted on Friday and staff have been offered an additional mental health day to take whenever they choose.

It comes just six months after the company introduced an annual $6000 “lifestyle payment” which staff can spend on anything from yoga to a new bicycle.

The co-founder said the major staff cuts came after some “big bets” did not pay off when favourable economic conditions did not persist into 2022.

“We scaled many of our functions, made some big bets and set ambitious hiring targets to meet them,” Mr Zaccarria said.

Supplied Editorial Linktree co-founders Alex Zaccaria, Anthnoy Zaccaria and Nick
 Humphreys. Source: Supplied.
Camera IconLinkTree is supporting laid off staff with a mental health package and 11 weeks’ pay. Sarah Chavdaroska Credit: Supplied

“Conditions changed faster than expected and those assumptions I made were wrong,” he said.

“I have many leanings to take into the next phase of building Linktree.

“That next phase involves narrowing our focus on our long-term strategy by reducing roles that are no longer aligned with our road map.”

The company is still actively recruiting for roles on LinkedIn, including product managers, integrated marketing managers and engineers, with 16 jobs currently advertised.

Linktree staff who have been let go are certainly not alone, as conditions get tougher in the tech industry.

Eucalyptus, a healthcare start-up behind contraceptive pill subscription brand Kin, made 20 per cent of the company redundant last month.

Eucalyptus, the brand behind Kin Fertility laid off ... staff last year. Picture Facebook.JPG
Camera IconEucalyptus, the brand behind Kin Fertility, laid off 20 per cent of its staff last year. Facebook Credit: NCA NewsWire

“Like many high growth companies, we are preparing for an economic climate that might not be as reliable in terms of funding as it has historically been,” Eucalyptus co-founder and chief strategy officer Benny Kleist told news.com.au at the time.

“Being more conservative with growth and being more critical with prioritisation of new initiatives is the best path forward and ensures we are more in control of our future and less reliant on external funding.”

Graphic design firm Canva had $20 billion slashed from its value by investors but has managed to avoid lay-offs and has even hired more than 700 new staff this year.

The tech company offers a hybrid work model, requiring staff to come into the office just one to two times a “season” and offers a “Vibe & Thrive” allowance to spend on anything from gym memberships to home office setups.

“We’re incredibly proud of the unique culture for over 3,000 people that we’ve built over the last decade, attracting 300,000 applications to join the team in the last year,” a Canva spokesman said.

Originally published as Tech start-ups are laying off staff but letting them keep the perks

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