Glitch laid off "a considerable number of employees,quot; on Thursday in an effort to cut costs and ensure "long-term viability," the company confirmed in an email to The edge. Glitch said it had to "significantly reduce operating costs,quot; due to market conditions.
At least 18 people were fired, according to two former employees who asked to remain anonymous. Glitch had about 50 employees before the layoffs, sources said. Glitch declined to comment on how many employees were fired. The company said it is offering "layoff compensation, health insurance and new job support,quot; to employees who were fired.
Glitch CEO Anil Dash tweeted that the layoffs occurred as a result of being a "small business in a fiercely competitive space in a difficult economy."
We had layoffs at Glitch this week. The context is what you would expect: we are a small business in a fiercely competitive space in a difficult economy. But these good people have done immensely valuable work for which our entire team and community are grateful.
– Anil Dash (@anildash) May 22, 2020
Glitch is a coding platform that was launched in 2017 under what was then known as Fog Creek Software. The platform looks quirky and emphasizes its ease of use – anyone is supposed to jump, remix someone else's code, and launch a small-sized app that will run on Glitch's servers.
However, the service has been completely free in almost all of the last three years. It wasn't until a month ago, about a month after the pandemic, that Glitch launched a subscription service, offering users the ability to pay $ 10 a month for expanded capabilities. The service got off to a slow start, according to both sources, with one describing the launch as "disappointing."
In March, Glitch employees voted to form a union under Communications Workers of America, making them one of the first technology companies to organize. Glitch agreed to voluntarily recognize the union, but the union had not yet negotiated a contract with the company. The edge has contacted the union for comment.
Glitch raised $ 30 million in funds in 2018. He said the funds would allow the company to "build the kind of platform and community that fits,quot; with its ambitious vision.