INSUBCONTINENT EXCLUSIVE:
Thumbtack CEO Marco Zappacosta announced in a blog post today that the company has laid off 250 employees.
Much has been written about the
impact that COVID-19 and the resulting social distancing/shelter in place measures are having on small businesses (and the steps that
internet platforms like Facebook and Yelp — which, after all, make money from small businesses advertising — are taking to
help).
Similarly, Zappacosta said the local services that Thumbtack showcases in its marketplace are also seeing anything from a &dramatic
decline& to an &outright collapse.& Apparently the company business has fallen 61% in San Francisco, 55% in Detroit and 50% in New York
City.
Thumbtack raised a $150 million round of funding last year, but Zappacosta said, &No business operates with enough of a buffer to
sustain prolonged revenue declines of 40%+ without making radical changes.&
Those changes include reduced marketing, a hiring freeze and 25%
salary reductions for executives
(Zappacosta said he will not take any salary at all, starting today.) And it also includes big layoffs.
Laid off workers will receive a
severance package with both &cash and equity components,& Zappacosta said
He also said Thumbtack is doing what it can to help its service providers, such as &building features that support more remote work with
customers — like video consults for a sink replacement that would typically be done onsite.&
