Bad Karma: Online shopping startup sacks almost a third of its workforce
Bad Karma: Online shopping startup sacks almost a third of its workforce
The Israeli company, which has developed an AI-driven shopping assistance browser extension and app, is laying off 20 of 70 employees
Karma, an AI-driven shopping assistance browser extension and app, has laid off 20 of its 70 employees, accounting for 28% of its staff. All of the employees being laid off are based out of Israel.
"Karma confirms that as part of a strategic change that it is currently carrying out, it was decided to also make changes to the workforce in order to deal with the challenges of the market in the best way possible,” the company said in a statement. “Karma made the decision to make these changes after a thorough and in-depth process and ultimately decided to focus on its core business from a place of strength and profitability."
Karma has raised a total of $34 million to date, including $25 million in a Series A round in October 2021. The Series A was led by Target Global followed by MoreTech Ventures, with participation from existing investors including NFX and Altair Capital.
The Israeli startup, which was founded in 2014 by CEO Jonathan Friedman and COO Ronen Yuval-Hoch, has developed a shopping tool that serves as one app across different devices. It offers consumers a planned shopping experience thanks to its automatic coupon finder, cash rewards, and price and inventory tracking. Sephora, Overstock, Net-A-Porter, Urban Outfitters, Farfetch, and Macy's are among Karma’s retail partners.
