Workmotion lays off 20 percent of its workforce

Around 60 people now have to leave the company. According to the founders, however, Workmotion remains stable.

Berlin-based HR tech Workmotion laid off 20 percent of its workforce on Tuesday. Co-founder Carsten Lebtig wrote this in a Linkedin-post. The company had more than 300 employees, so around 60 people are likely to be affected. Lebtig justifies the redundancies with the macroeconomic "slowdown", which is also affecting Workmotion's customers. As fewer companies are hiring new employees, the start-up's business is also suffering.

Workmotion offers companies a tool that enables them to hire remote specialists abroad. The start-up draws up employment contracts in accordance with the local laws of the country of origin and also organizes payroll and tax matters. According to the company, the service is available in 160 countries.

Lebtig founded the company in 2020 together with Felix Steffens and Karim Zaghloul. In June, the founders raised 50 million US dollars in a Series B financing round. In total, the start-up has raised around 70 million euros since it was founded. The support of the investors is still there, as is the financing, writes Lebtig. In the current market environment, however, a leaner team is better equipped for the tasks.