Houzz, an online platform for house renovation and design, has laid off 155 staff, nearly 10% of its staff, per an internal memo. Executive salaries also took a cut.
The corporate, last valued at $4 billion, confirmed the content of the memo in a statement.
In the internal memo, Houzz’s owners Adi Tatarko and Alon Cohen cite COVID-19’s effect on its main business: pro subscriptions. The subscriptions are for home restructuring and design experts to search out work. Because of the COVID-19, many of those same professionals are dealing with project delays or suspensions as states promote social distancing and shelter in place.
Beyond serving as a market for home renovators and customers, the corporate also sells furniture from third parties. Many shoppers might not be thinking about renovating their bathroom or welcoming construction into their home as the pandemic shows up on doorsteps around the globe.
While the layoffs are COVID-19 related, this isn’t the first sign of Houzz struggling as an enterprise. Last month, Houzz fired ten people and scrapped a plan to create furniture in-home. The step would have seen Houzz bring in-house a number of the revenue it normally delegates to third-party manufacturers.
The corporate further had some turbulence in 2019 when it disclosed a data breach compromising 57 million data. A year prior, Houzz fired 10% of its staff to cut costs and restructure forward of preparing for an IPO. And contemplating a number of factors, we’re guessing that plan to barrel toward the public markets might have modified.