Amid the stock market downturn and tough economic conditions, the wave of local tech companies announcing job cuts and office closures is accelerating.
Security-tech company Cybereason in Boston and education-tech company Esme Learning in Newton are among the latest announcing layoffs.
Cybereason said it is cutting 10 percent of its employees, about 100 people, despite raising $325 million last year. The company had been planning to go public this year, but that looks increasingly unlikely as the stock prices of tech companies continue to plunge.
“As the bullish tech market conditions have turned and the tech IPO market has essentially closed, companies like us must now exercise more strict financial discipline and prioritize profitability over top line growth,” a spokesman said.
At Esme, a blog post from chief executive and co-founder David Shrier said the company was cutting some jobs, without giving more details. Consumer demand for Esme’s online courses has declined while interest from corporate customers is rising, Shrier said. “As such, we are reorienting the organization to best serve this demand, which unfortunately means reducing the size of our team,” he wrote.
The cuts were focused on workers on the consumer sales effort, a spokeswoman said. In February, the company raised $15 million and said it employed more than 100 full-time employees and 60 contractors.
The June cutback announcements expand the cost-cutting trend that took hold last month and included layoffs at e-commerce company Thrasio and AI software company DataRobot. Some of the largest tech companies in the region including Wayfair and Meta have announced temporary hiring freezes. Tech stocks have plunged more than 25 percent this year, while the sector is also dealing with supply shortages, inflation, and COVID-related factory shutdowns in Asia.
Some local companies are doing more than just cutting jobs. 3D-printer maker Desktop Metal in Burlington said it would cut 12 percent of its workforce, consolidate its offices, and look to make further cuts in its international workforce as part of a two-year, $100 million cost-cutting plan.
Desktop Metal went public in 2020 by merging with a special purpose acquisition company, but has since seen its stock price crumble, dropping 90 percent. The company completed several acquisitions last year, including buying Pennsylvania-based ExOne for $575 million and Michigan-based EnvisionTEC for $300 million. Its workforce surged from 202 at the end of 2020 to 1,370 at the end of 2021.
Meanwhile, online marketplace The Grommet in Somerville is closing down completely, putting about 50 people out of work. The 14-year-old company was bought by Ace Hardware in 2017.
Aaron Pressman can be reached at [email protected]. Follow him on Twitter @ampressman.