Hours after raising $500 million, AI startup Cohere told staff it was laying off about 20 employees

Question

employee post on LinkedIn:

We just raised $500mm 😀😀😀

1 hour later:

#opentowork

😣 should startups layoff (cut fat) before or after the raise?

Accepted Answer

usually that happens way before getting $$. Seems pretty lousy.

Answer

Typically done before to lighten books. Also happens pre-IPO a lot to avoid the whale early equity holders.

Answer

Can someone explain how they can be hiring and laying off simutaneously. Silly question… or did they layoff only certain specific other roles, not sales.

Answer

Honestly expect shenanigans in early stage start ups, and that goes double for AI.

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Lame… leadership must be a joke pulling some ish like this.

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That’s just all fukkkered up.

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Need to show growth in order to raise cash, so makes sense.

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Seems like their CEO cut 20ppl to carve out a nice attaboy bonus for raking in some new cash.

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Do they have no decency?!? Everyone knows you raise money, hire employees, then fire them in month 11 so they don't get any of their bonuses or equity. What kind of ametuers are running that shit heap?

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It sucks but sometimes it’s the investor requirement to assess the workforce and lay off the over hired number.

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Layoffs suck, but that's wild to do a layoff right after a 500 million dollar capital raise?

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they also have 83 jobs open atm

Answer

"Bloomberg reports that Cohere plans to double its 250-employee headcount this year."

Answer

Those founders should be tarred and feathered. Heartless

Grow

Hours after raising $500 million, AI startup Cohere told staff it was laying off about 20 employees

24 comments

Grow

Hours after raising $500 million, AI startup Cohere told staff it was laying off about 20 employees

24 comments

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