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HomeTechWefox CEO 'disgusted' by mass tech layoffs: 'These are humans'

Wefox CEO ‘disgusted’ by mass tech layoffs: ‘These are humans’

Wefox CEO ‘disgusted’ by mass tech layoffs: ‘These are people’

Wefox CEO Julian Teicke.


HELSINKI, Finland — The boss of European digital insurance coverage startup Wefox provided a damning response to tech firms which have laid off employees en masse.

The likes of Meta, Amazon and Twitter have laid off tens of 1000’s of staff in response to strain from traders, who wish to see them minimize prices to climate a worldwide financial downturn.

Swedish fintech agency Klarna was among the many first main employers in tech to slash jobs this yr, chopping 10% of its workforce in Could. A number of firms have adopted swimsuit, from these in Massive tech to venture-backed startups like Stripe.

Julian Teicke, CEO of Wefox, instructed CNBC he’s “disgusted” by what he views as a disregard by a few of his friends for his or her staff.

“I’m a little disgusted by statements like, ‘never miss a good crisis’ [or] ‘we have to cut the fat,'” Teicke stated in an interview on the sidelines of Slush, a startup convention in Helsinki, Finland.

Enterprise capitalists have been advising startups of their portfolios to chop prices and freeze hiring as economists warn of an impending recession.

Following a bumper 2021 stuffed with IPOs and mega funding rounds, among the most precious startups in Europe laid off important numbers of employees and drastically scaled again their growth plans.

Initially of Slush on Thursday, Sequoia Capital associate Doug Leone instructed founders and traders they need to embrace alternatives introduced by challenges within the broader economic system.

Forecasting a chronic recession worse than the 2008 or 2000 crises, Leone stated some firms will emerge stronger than others. 

“You have a great opportunity in front of you, if you play your cards right,” he stated. “You have an opportunity to pass 10 cars. Do not waste a good recession.”

In some eyebrow-raising feedback, Sebastian Siemiatkowski, CEO of Klarna, stated his agency was “lucky” to chop jobs when it did. Siemiatkowski stated that roughly 90% of the individuals laid off had since discovered new jobs.

“If we would have done that today, that probably unfortunately would not have been the case,” Siemiatkowski instructed CNBC in an interview.

With out naming names, Teicke slammed the tech business over its method to mass redundancies.

“These are people that have maybe quit other jobs to join your business. These are people that have maybe moved to other places because of you. These are people that have maybe ended romantic relationships.”

Teicke stated managers have a accountability to guard their staff.

“I believe that CEOs have to do everything in their power to protect their employees,” he stated. “I have never seen that within the tech business. And I am disgusted by that.”

“These are humans,” he added.

Wefox is a Berlin, Germany-based agency that connects customers searching for insurance coverage with brokers and associate insurers via an internet platform. The corporate was valued by traders at $4.5 billion in a July funding spherical.

Wefox says its business is “crisis-resistant.” However fellow insurtechs have needed to make cuts these days, together with Lemonade, which shed 20% of employees at Metromile, a automobile insurance coverage firm it acquired, in July.

Requested whether or not his personal agency must make redundancies in response to shifting investor sentiment, Teicke stated his agency was “cautious” in regards to the macroeconomic atmosphere however had no plans for mass layoffs.

“I don’t believe in mass layoffs,” Teicke stated. “We’re going to focus on performance, but not on mass layoffs.” Wefox is “very close” to attaining profitability subsequent yr, he added.

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Editorial staff
Editorial staff
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