CEO said the current environment makes it challenging to fund Introhive’s high-growth strategy.
Fredericton-based Introhive has made cuts to its employee base, joining a growing list of Canadian tech companies as they go into survival mode in preparation for an economic downturn.
Introhive CEO Jody Glidden announced the company-wide layoffs this week on LinkedIn, sharing an internal memo to Introhive employees. In his post, Glidden attributed Introhive’s decision to shed some of its staff to the current turbulent markets.
Entrevestor reported that Introhive laid off about 16 percent of its workforce, leaving the company with 300 employees. Glidden told the outlet that the hardest hit region by the staff reduction was India. Glidden did not respond to BetaKit’s request for comment by time of publication.
Founded in 2012 by Glidden and Stewart Walchli (CRO), Introhive offers an AI-enabled customer intelligence platform to help organizations increase revenues, employee productivity, and improve customer experience management. The company claims that it has over 350 employees and more than 250,000 customers in over 90 different countries.
In addition to its offices in Canada and India, the company has locations in Chicago, Miami, and London, United Kingdom.
“The current environment makes it challenging to fund the high-growth strategy that we and many other tech companies have pursued over the last two years,” Glidden’s LinkedIn post reads. “Ultimately that means we must eliminate some positions and refocus on the company’s core competencies.”
RELATED: After nearly doubling revenue during pandemic, Introhive raises $121.3 million CAD
The Fredericton startup raised $121.3 million CAD in 2021, representing the largest equity funding round for a New Brunswick startup at the time. Introhive’s past funding rounds include $7.3 million in 2015, and a Series A round of $1.8 million in 2012.
In 2019, Introhive also received almost $1 million from the Atlantic Canada Opportunities Agency for international market expansion and product development.
According to the registry for the Office of the Commissioner of Lobbying of Canada, Introhive had been lobbying federal government agencies, including Atlantic Canada Opportunities Agency and Innovation, Science and Economic Development Canada, as recently as March, for additional financing. The database shows that Introhive was looking to secure a project loan from the Strategic Innovation Fund to support the development of new intellectual property. It is unclear whether Introhive received the funding.
Introhive is the latest Canadian tech company to make staff cuts as the sector undergoes a cooling down period in venture funding, coupled by inflation, political tensions in Europe, and overall unfavourable market conditions. In recent weeks, companies like Wealthsimple, Clutch, WonderFi, Thinkific, Bonsai, BBTV, Legible, and Proposify have also cut their employee count.
According to Glidden’s post, Introhive will be providing transition support for its laid-off employees. These contributions are expected to include job placement support, career coaching, resumé reviews, as well as reference support from leaders in the company.