Linktree axes Aussie, NZ staff to hire in US after acquiring Swiss Rival Bento
Staff at the Melbourne tech unicorn awoke to an email saying it was sacking over a quarter of local staff, its second downsize in a year.
Australian social media start-up Linktree has axed over one quarter of local staff, engaging in its second round of job cuts in less than 12 months as it looks to free up space to hire in the US.
Staff at the social media platform awoke to an email about the lay-offs from co-founder and chief executive Alex Zaccaria on Tuesday, in which the company also spoke of its US shift and how it had landed the White House and Denver Nuggets as users of the platform.
“We have built this momentum to date with very few Linkies based in the US. We need to focus on our growth in the US and hire people with deep experience building products for this specific audience.” the email read.
The lay-offs arrive three months after the Melbourne-based company appointed three new US executives including a chief technology officer, a chief product officer and a chief marketing officer.
In Mr Zaccaria’s email on Tuesday he said the company would now move roles from its product, engineering, marketing and design teams to the US.
The cuts would see a total of 27 per cent of staff, primarily from Australia and New Zealand, lose their roles as the company frees up budget to US-based tech workers.
This round of lay-offs is the second to hit the company, which laid off 17 per cent of staff, understood to be 48 of its former 280, in August 2022. This round of lay-offs will affect a larger number of staff, thought to be over 60.
Staff affected in the first round of lay-offs were given all of their work-from-home equipment and received a severance package including 11 weeks pay within five business days of their dismissal.
“Impacted teammates also received accelerated vesting, outplacement support, computer and work-from-home equipment, mental health support and more,” a spokeswoman told The Australian at the time.
Staff were told that despite the move and losing over a quarter of local staff that the company’s co-founders, which include Mr Zaccaria’s brother Anthony and their friend Nick Humphreys, would stay in Australia.
“Whilst we will be a leaner local team, I want those of you remaining to know how important you are to our next stage of growth – I guarantee you we will not lose our roots as we expand our US presence,” he said.
Amid the job cuts was news of Linktree having acquired German rival Bento, a Berlin-based link-in-bio platform backed by Sequoia which is developing the ability for users to consume content on its platform.
“They’ve built a platform based in visual expression and that vision is fully aligned with our strategy and direction as we continue to uplevel Linktree and the category we created,” Mr Zaccaria said.
Staff unaffected by lay-offs would all meet on Friday morning to discuss Linktree’s plans for the US and then be allowed to take the rest of the day off should they need.
“Friday will be a day for all Linkies to use for processing this news in whichever way works best for them,” the email read.
“I know not only is this significant news to process, but it is also not the first challenge we have experienced. As such, I want you to know that I am grateful for your continued faith and commitment to this amazing business that we have all built together.”
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