Guild, a San Francisco-based edtech unicorn, has made the decision to lay off 172 employees, which constitutes 12 per cent of its workforce. This action is being taken as part of a comprehensive reorganisation aimed at fostering long-term growth for the company.
According to layoffstracker.com, Guild CEO Rachel Romer informed employees in an email that the layoffs had been "incredibly painful" but deemed necessary to ensure the long-term success of the company.
She conveyed to the staff that the company had "identified the go-forward structure, roles, and skill sets required to facilitate our strategy and establish a more streamlined and cohesive approach to work at Guild."
Affected individuals will be provided with a severance package consisting of 12 weeks of pay, along with an additional week of pay for each complete year of service rendered at the company.
Furthermore, individuals affected by the layoffs will have access to medical, dental, and vision coverage through the Consolidated Omnibus Budget Reconciliation Act (COBRA) for a duration of up to 18 months. Guild will cover the premiums for the initial six months of this coverage.
According to the report, Guild, headquartered in Denver, Colorado, has granted a two-year extension to the equity exercise period, enabling employees to continue benefiting from the company's upskilling programs.
Additionally, individuals impacted by the layoffs will retain access to the Beehive, Guild's subsidised childcare program. In 2022, the company successfully raised over $200 million in funding, resulting in a valuation of $4.4 billion.
The company attained unicorn status in 2019, and in the previous year, it secured a Series F financing round of $175 million, featuring an investment from Oprah Winfrey.