News reports surrounding the real estate tech space continue to suggest that many startups are fundamentally traditional businesses with excess expenses. Truly disruptive tech companies should be in position to thrive when the economy recovers.
- Compass has laid off 15% of its staff, or around 375 employees. Founder Rob Reffkin is projecting a six-month decline in revenue of 50 percent. (TechCrunch)
- Shared office-space startup Convene has laid off a fifth of its workforce, or about 150 employees. (BusinessInsider)
- Knotel finds itself in dire straits and is capriciously switching its focus to using the 5-million-square-feet it leases around the world for emergency needs. (CO)
- VC-backed Sonder has laid off more than 400 people, about one-third of its staff. The company is the largest of a raft of startups that sublease stylish apartments for short stays. (TheInformation)
No more SoftBank bailouts…. Chief Executive Masayoshi Son poured nearly $100 billion into pricey, cash-burning startups in the last years of the bull market, said it would sell billions of dollars in assets to prop up its plunging stock price and shore up its debt-laden balance sheet following the threat of a ratings downgrade, according to the WSJ.