Sequoia, a venture capital firm, has undergone a significant restructuring resulting in the layoff of seven employees from its operations team, as reported by Forbes.
This move affected approximately one-third of the company’s staff responsible for recruiting startups in its portfolio. The layoffs come after the departure of Jamie Bott, a veteran leader of the talent team.
The downsizing of staff is not unique to Sequoia, as other firms in the industry have also taken similar actions.
Earlier this year, Y Combinator let go of 17 employees while it closed shutting down its late-stage startup fund. This downsizing trend among VC-backed startups is attributed to a severe fund crunch the drying up of funds, leading companies to trim their workforce to sustain their businesses.
Sumaiya Balbale, chief operating officer, Sequoia explained that the company’s talent needs had significantly increased during the peak years of 2021 and 2022, leading to a doubling of the workforce. However, with the slowdown in startup hiring, it a correction became necessary to rectify this. Balbale noted a decline in inbound requests and hiring needs during this period.
The layoffs are part of a broader restructuring effort at Sequoia, aiming to shift from individualised support to a more scalable approach benefiting a larger number of founders. The firm adopted an agency-based approach to accommodate the growing demands for talent-focused employees.
Sequoia has been going through a period of change since Roelof Botha took over its leadership. The firm decreased management fees for its limited partners and allowed early withdrawals from its evergreen fund. Additionally, Sequoia’s India and China units split into separate companies due to geopolitical pressures.
