Checkr, the background-screening platform final valued at $5B, cuts 32% of workforce

Checkr, a 10-year-old startup that gives worker background checks and was final valued at $5 billion in April 2022, has laid off 382 staff as firms are usually not considerably hiring expertise.

TechCrunch solely discovered that Checkr performed the layoffs throughout all departments and totally different ranges on Tuesday. The San Francisco–primarily based startup confirmed the layoffs in an electronic mail.

“In response to economic conditions that have impacted companies’ hiring, we made the difficult and painful decision to reduce the size of our team. This will allow us to operate more efficiently and ensure the long-term health of our business,” a Checkr spokesperson mentioned within the assertion.

The job cuts — which affected 32% of the corporate’s workforce — got here almost two years after Checkr introduced the acquisition of Inflection, the startup behind GoodHire, a background-checking platform for small- and midsized companies. On the time, The Wall Avenue Journal reported the deal was worth $400 million.

Backed by storied traders, together with Sturdy Capital Companions, Constancy Administration & Analysis, Franklin Templeton, BOND and Coatue Administration, Checkr lets firms do background checks by trying into driving and felony information and fundamental id affirmation of their potential staff. The startup provides a web based kind to let firms run these checks or use its API, which may be built-in inside their hiring techniques or onboarding software program, together with Workable and Zenefits.

Based in 2014, Checkr counts Uber, Instacart, Netflix, Adecco, Airbnb and Coinbase amongst its key prospects. Its buyer base grew to greater than tens of hundreds of firms starting from small and medium companies to Fortune 500 employers in 2022. Initially, the startup was restricted to Silicon Valley, but it surely expanded its presence beyond the Valley in 2016.

Checkr has given the affected staff a minimal of 10 weeks of severance and medical insurance, in addition to profession and psychological well being help, the spokesperson mentioned.

The startup didn’t reply questions on its runway and fundraising plans. So far, it has raised $679 million, with the final spherical of $250 million introduced in September 2021.