May 28, 2022

Austin Unicorn Workrise has laid off an unspecified number of employees as it exits various industries and plans to sell part of its business.

Company, who created the human resources management platform for skilled craftsconfirmed that she was laying off employees, but declined to say how many. Last May, gaming-updates announced that the company $300 million raised At a $2.9 billion valuation at the time, Workrise Currently, more than 600 employees work in 25 offices.

Perhaps you know the startup better by its former name Rigup. The company was founded in 2014 as a marketplace for in-demand services and skilled workers in the energy sector. This changed my name Re-focus on industries other than oil and gas in early 2021 after the industry has collapsed in recent years.

But it looks like the company is returning to its roots after it didn’t work as planned.

WorkRise spokesman Dan Banks told gaming-updates in a statement:

In recent months, Workrise has developed a strategy to support skilled workers in the energy industry. In this assignment, Workrise has chosen to move out of verticals that no longer fit with its forward strategy.

Unfortunately, this restructuring will affect many of our employees and we have made the difficult decision to lay off staff. This was done after careful consideration and resulted in job cuts, departmental consolidation and a general reprioritization of development. It has not been an easy process, but we believe this restructuring is in the best interest of the company as we help skilled workers advance their careers in our core industries, including oil and gas and renewables.

In an internal employee email received by gaming-updates, CEO and co-founder. Juan Yong It is noted that entering new markets outside of oil and gas was aimed at diversifying Varkaris’ business and supporting a wider range of skilled craftsmen. He added that the COVID-19 pandemic has accelerated the company’s investment in these markets.

He also added that the company has since decided it can make the “biggest impact” in the energy sector.

IWith this in mind, we have assessed the rest of our portfolio and determined that some companies are not suitable both financially and product-wise. The diversity of the businesses and employees we serve has created a huge complexity that has prevented us from effectively developing and developing them. When we were scattered across industries with very specific needs, it was more difficult for an employee to deliver a product. That is why we have made the very difficult decision to phase out some industries and focus on energy – oil and gas and renewables,” Yong wrote.

As a result, he says, the company will “immediately change” some parts of his business and separate them from others. He said that Workrise has signed contracts with buyers for one of its companies and is considering selling the rest.

Yong also wrote, β€œIn the near future, we will have fewer customers and support staff. And the sad reality is that we will have to cut our corporate workforce in order to support the business we are growing. It was not an easy decision, but it was necessary for the future success of our company.”

This is not the first time a company has had to lay off employees. In 2020, Workrise laid off a quarter of its company’s employees as the industry was hit by the COVID-19 pandemic. In this case, it looks like the pandemic pivot didn’t work for the company.

During the latest increase, the company told me that gross sales have tripled since 2018, from $300 million at the end of 2020 to nearly $900 million.

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