Matterport, a Bay Area-based tech firm that creates 3D space imagery, is laying off 170 employees, or 30% of its workforce. The layoffs come as Matterport faces challenging market conditions for real estate and as the company seeks to become profitable.
In a blog post announcing the layoffs, CEO RJ Pittman said that the company is “saying goodbye to world-class professionals” but that the layoffs are necessary to “speed the firm toward profitability.” Pittman also pointed to the “challenging market conditions for real estate” as a reason for the layoffs.
Matterport’s stock price has also taken a hit in recent months. After peaking at about $28 a share in November 2021, the company now trades for less than $4 a share.
The layoffs are the latest in a series of cost-cutting measures that Matterport has taken in recent months. In January, the company announced that it was cutting 10% of its workforce.
Matterport is not the only tech company that has been hit by layoffs in recent months. Other companies that have announced layoffs include Meta, Twitter, and Netflix.
The layoffs in the tech industry are a sign of the changing economic landscape. As interest rates rise and inflation increases, businesses are becoming more cautious about spending. This is leading to layoffs in some sectors, including the tech industry.
Despite the layoffs, Matterport remains committed to its long-term vision of creating a “digital twin” of the physical world. Pittman said in his blog post that the company is “leaning hard into artificial intelligence” to achieve this vision.
Matterport’s layoffs are a reminder that even the most successful tech companies are not immune to the economic challenges of the current environment. However, the company’s commitment to its long-term vision suggests that it is still well-positioned for success in the years to come.