Checkr, a San Francisco background screening firm, plans to cut 382 jobs, representing nearly one-third of its workforce.
The 10-year-old startup submitted a WARN notice to California regulators on Tuesday, complying with the Worker Adjustment and Retraining Notification Act. TechCrunch reports the reduction affects 32% of Checkr staff.
The San Francisco office will shed 260 positions, including dozens of engineers and eight director-level employees. Those workers will officially leave their roles in June. Meanwhile, the company filed a separate WARN notice in Colorado covering 92 layoffs.
Checkr spokesperson Meghana Patnana confirmed the total of 382 cuts. She characterized the “painful and difficult” decision as a response to “economic conditions that have impacted companies’ hiring.”
The tech sector, despite fairly strong national employment numbers, continues to tighten its belt. Checkr’s own client base includes many technology firms now scaling back their recruiting efforts.
Affected employees will receive at least 10 weeks of severance pay, health insurance coverage, and career and mental health support, according to Patnana.
The layoffs mark a sharp reversal for the privately held company. Checkr has raised $679 million since its founding, according to Crunchbase. A 2021 funding round valued the startup at $4.6 billion, pushing it firmly into unicorn territory. The following year, Checkr acquired Redwood City-based background check competitor GoodHire in a $400 million deal.
The company provides background screening services covering education, employment history, and criminal records for corporate clients.
