Social media tech start-up Linktree axes 17pc of staff

The social media start-up was most recently worth $1.78bn, and in February gifted each of its employees a $6000 rewards package.

Social media start-up Linktree is laying off nearly 20 per cent of its workforce. Picture: Sarah Chavdaroska

Australian billion dollar social media start-up Linktree is laying off nearly 20 per cent of its workforce, the latest casualty in what is quickly becoming a bloodbath for the local technology sector.

Linktree, based in Melbourne and Sydney, was most recently valued at $1.78bn and is one of the top 300 most popular websites globally with 1.2 billion monthly views, growing from a simple “link in bio” page for influencers to a platform enabling brands, artists and businesses to monetise their content through social media.

The company was co-founded by chief executive Alex Zaccaria, who started the start-up with his brother Anthony and their friend Nick Humphreys initially as a side business. The company is thought to have around 280 employees, with the 17 per cent figure representing about 48 staff.

Start-up valuations have come under pressure in recent weeks amid a broader market rout, forcing several local software companies to shut down or lay off staff, in what‘s becoming a tech bloodbath.

“Today I shared the difficult news with our team that Linktree is reducing our global workforce by 17 per cent in order to emerge stronger from the economic downturn,” chief executive Alex Zaccaria said in a LinkedIn post.

“Our people have built Linktree into what it is today: trusted by millions of people around the world. I‘m heartbroken to say goodbye to some incredible teammates today, and want to do all I can to support them.

“On Friday, we will post a public, opt-in Airtable for those of our team impacted and ask you to please consider this group of incredibly talented and passionate people for roles you have open. I can assure you they will make huge contributions wherever they land. If you’d like to speak to me personally about any individual, my DM’s are open.

“My focus and priority this week is on the team we say goodbye to alongside those that remain as we continue to move Linktree forward together.”

He said in a letter to staff that he‘ll be hosting a weekly ’Ask Me Anything’ session to staff for the next four weeks.

“Friday will be a company-wide mental health day at Linktree. For a company like ours, so focused on culture and camaraderie, this will be difficult news. I don’t expect anyone to be their normal selves. We will also be allocating you an additional mental health day that you can take at a time that suits you,” he said.

“The opportunity for Linktree is immense and I have no doubt we’ll achieve everything we intend to and more for our creators. The right path is rarely the easy path. Today’s change to our team is the hard path, but it puts us in a strong position to deliver on the opportunity we have in front of us.”

Linktree was co-founded by chief executive Alex Zaccaria, who started the start-up with his brother Anthony and their friend Nick Humphreys. Picture: Sarah Chavdaroska

Just six months ago, the company announced a new ‘Total Rewards Programme’ to its employees, gifting them $6,000 of annual allowance to spend on wellness, growth, lifestyle or impact.

“All Australian, US and ROW employees have $6,000 AUD/roughly $4,200 USD (at time of publishing) to spend annually among four pillars,” Linktree said in its announcement.

“Ultimately, we wouldn’t be where we are today without our people, so we’re offering a program that allows them to thrive both at work and outside of work.”

Mr Zaccaria said in an interview with The Australian in June that despite the downturn Linktree was still in a strong position given it had plenty of cash on hand after its most recent funding round.

“We’re still continuing to grow, but we are obviously paying close attention to the volatility,” Mr Zaccaria said in June.

“Ultimately, generational companies have been born in downturns, and we think this is a great time to capitalise and be very smart and strategic about how we do things. We were completely bootstrapped and cashflow positive until we first decided to raise in early 2020, so we know how to run this business efficiently.”