Subsequent has workplaces within the US and Israel, with workers members in each nations probably affected.
Goldstein named worsening financial situations, a shift in the direction of priotizing profitability, and price administration drivers as components that led to the transfer to trim the insurtech’s workforce.
“This is likely one of the hardest selections I’ve made in my skilled life and one I take very significantly,” Goldstein mentioned within the message to staff, which has additionally been shared on the enterprise’s web site.
“As tough as that is, it’s my accountability to regulate our priorities in gentle of the brand new actuality of market situations and to speed up Subsequent’s objectives to grow to be worthwhile,” the CEO mentioned.
“I imagine these modifications will finally protect our place of management out there and extra importantly will enable us to satisfy our mission to assist entrepreneurs thrive.”
Subsequent was based in 2016 and launched the next yr, providing insurance coverage cowl for small companies.
The insurtech has raised $881 million in funding, in keeping with Crunchbase, together with three $250 million rounds. In April 2021, when it accomplished its most up-to-date increase, unicorn Subsequent was valued at $4 billion.
Its backers embody Munich Re Ventures and Google proprietor Alphabet’s personal fairness enterprise CapitalG.
The downsizing at Subsequent follows sizzling on the heels of cuts at Texas primarily based life insurance coverage insurtech Bestow, which laid off round 14% of its workforce – or 41 staff – in June.
Bestow co-founder and CEO Melbourne O’Banion blamed “altering market situations” for the transfer, The Dallas Morning Information reported.