GoFundMe will eliminate 94 positions, cutting 12% of its workforce, as the crowdfunding giant confronts a sharp drop in donations driven by inflation and tighter household budgets.
The layoffs, announced in an Oct. 26 email from CEO Tim Cadogan, mark the latest contraction among tech companies navigating an economic downturn. GoFundMe, headquartered in Redwood City, employs roughly 523 people, with 88 based in the Bay Area, according to LinkedIn data.
Cadogan told staff the company’s trajectory shifted dramatically this year. Shrinking budgets and rising costs have suppressed giving, undercutting initiatives meant to expand peer-to-peer support. As a result, he wrote, GoFundMe will scale back long-term investments and refocus on its core operations.
“Unfortunately, as part of this restructuring, we have to reduce the number of people on the team,” Cadogan stated.
Departing employees receive 13 weeks of severance pay, with additional compensation for those who have served at least three years. Laid-off workers will also get an extended window to exercise stock options, stretched from three months to three years.
The move places GoFundMe among dozens of technology firms retrenching amid recession fears and slowing consumer spending. For a platform built on generosity, the downturn tests whether compassion can withstand financial strain.
