Online e-commerce platform Wish is laying off 152 employees from its headquarters in San Francisco, according to a filing on the California EDD. The layoffs will go into effect at the end of the month.
The layoffs represent about 17% of Wish’s total workforce of 886 employees. The company is also cutting about 34% of its total workforce globally.
Wish CEO Joe Yan said the layoffs are necessary to “significantly lower our cost structure and improve operational efficiencies.” He said the company is facing a “challenging operating environment” and that macroeconomic uncertainties and competitive pressures will likely persist.
Wish is not the only tech company that has announced layoffs in recent months. Other Bay Area tech companies that have cut jobs include Intel, Salesforce, Google, and Meta.
The layoffs come as the tech industry faces a number of challenges, including rising inflation, supply chain disruptions, and a slowdown in growth.
The laid-off employees will receive severance packages that include severance benefits, cash severance payments, and reimbursement of medical insurance premiums.
Wish estimates that the layoffs will cost the company about $8.7 million in expenses, but it expects to save between $43 million and $46 million starting in the fourth quarter of 2023.
The layoffs are a significant blow to Wish, which has been struggling in recent years. The company’s stock price has fallen by more than 99% since going public in 2020.
It remains to be seen how the layoffs will impact Wish’s business. The company said it is committed to “thriving over the longer term,” but it is facing a number of challenges.