Gifting platform Snappy sacking 30% of its workforce, around 100 employees
Gifting platform Snappy sacking 30% of its workforce, around 100 employees
“Unfortunately, we must make extremely painful choices in order to orient Snappy’s financial profile toward sustainable growth and profitability,” wrote CEO Hani Goldstein
Israeli-founded and New York-based gifting platform Snappy is laying off 100 employees, accounting for around 30% of its workforce. The company was co-founded by CEO Hani Goldstein and CTO Dvir Cohen, who is in charge of Snappy’s R&D activity in Israel. The company said that only a small number of those leaving the company are based in Israel.
Snappy completed a $70 million Series C funding round in May 2021, bringing total funding for the company to over $105 million. This latest investment was led by GGV Capital with participation from existing investors 83North, Saban Ventures, and Hearst Ventures, and came just nine months after it raised $25 million.
“Today, Snappy is announcing plans to reduce our talented global team by approximately 30%,” Goldstein wrote in an email to the employees. “Over the past few years, Snappy experienced tremendous growth and benefited from multiple tailwinds. This led to accelerated investment as well as increased hiring in an effort to sustain that momentum. We built our strategic plans around expectations for continued growth and global expansion.
“Sadly, we are now part of an entirely different reality and Snappy is experiencing the impact of economic shifts and uncertainties that many other companies in the tech industry are experiencing. Unfortunately, we must make extremely painful choices in order to orient Snappy’s financial profile toward sustainable growth and profitability.”
According to Snappy, companies in the U.S. spend more than $125 billion on gifts for both employees and customers, with a further $375 billion spent by individuals. Yet, gift-giving is an inefficient process with over $100 billion in returns processed every year in the U.S. alone. Snappy’s approach to curated gift collections allows recipients to choose the gift they love before it’s delivered, making environmental and logistical sense.
