Checkr, a prominent background check platform last valued at $5 billion, has undergone significant layoffs, impacting 382 employees. This decision was made amid a slump in the hiring environment for many companies.
The layoffs, revealed exclusively to TechCrunch, span all departments and various hierarchical levels within the San Francisco-based startup. A Checker spokesperson confirmed the job cuts in an email, highlighting economic conditions influencing hiring decisions as the primary driver of this restructuring activity.
“In response to economic conditions impacting corporate employment, we have made the difficult and difficult decision to reduce the size of our team. This will allow us to operate more efficiently and This will help ensure the long-term health of the business,” the spokesperson said.
The job cuts, representing 32% of Checkr's total workforce, follow Checkr's acquisition two years ago of Inflection, the parent company of GoodHire, a background check platform for small and medium-sized businesses. The acquisition is reportedly valued at $400 million and is aimed at strengthening Checkr's service offering.
Backed by prominent investors such as Durable Capital Partners, Fidelity Management & Research, and Coatue Management, Checkr's platform allows companies to evaluate potential hires by completing basic background checks, including driving and criminal history, and more. We can conduct comprehensive background checks on individuals. His clients include well-known companies such as Uber, Netflix, and Airbnb, and his client base has grown rapidly over the years.
In response to the layoffs, Checker provided affected employees with a minimum of 10 weeks of severance pay, continued health insurance coverage, and career transition and mental health support.
Although Checkr has not disclosed details of its financial runway or funding plans, the startup has raised a significant amount of funding to date, totaling $679 million, with the latest funding announced in September 2021. The funding round was valued at $250 million.