Workmotion lays off 20 percent of its workforce

About 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. That's what co-founder Carsten Lebtig wrote in a Linkedin-contribution. The company employed more than 300 people, so about 60 people are likely to be affected. Lebtig justifies the layoffs with the macroeconomic "slowdown," which is also affecting Workmotion's customers. With fewer companies hiring new employees, the startup's business is also suffering.

Workmotion offers companies a tool through which they can hire remote professionals abroad. The startup creates employment contracts according to the local laws of the country of origin and also organizes payroll and tax matters. It says the service is available in 160 countries.

Lebtig founded the company in 2020 together with Felix Steffens and Karim Zaghloul. As recently as June, the founders raised $50 million in a Series B funding round. In total, the startup has raised about 70 million euros since its founding. Investor support is still there, as is funding, Lebtig writes. In the current market environment, however, a leaner team is better equipped for the tasks at hand, he says.