RapidAPI, a popular API marketplace, was forced to lay off 50% of its staff despite being valued at $1 billion. The news comes as a shock to many in the technology industry, especially given that the company had raised $60 million in its latest round of funding less than a year ago. The COVID-19 pandemic has hit many companies hard, and RapidAPI is no exception. The company, which connects developers to APIs from over 35,000 providers, saw a significant drop in revenue during the pandemic.
In response, the company had to cut back on its expenses, including reducing its workforce. They found RapidAPI in 2015 and quickly became a go-to marketplace for developers looking to add functionality to their applications. The company’s growth was impressive, with over a million developers using the platform and over 35,000 APIs available for use. The company’s success also caught the eye of investors, with the latest funding round valuing the company at $1 billion.
Despite this success, RapidAPI still fell victim to the pandemic’s economic fallout. RapidAPI CEO Iddo Gino wrote in a blog post that the company’s revenue had been heavily affected. Stating that “despite seeing good growth in some areas, we saw a significant slowdown in others, resulting in a material impact on our overall business.” While the layoffs are certainly unfortunate for those affected, RapidAPI is not alone in making such tough decisions.
The pandemic hits RapidAPI’s revenue
Many companies have had to reduce their workforce during the pandemic to keep afloat. For example, Airbnb laid off 25% of its staff in May 2020 due to COVID-19. Despite the setbacks, RapidAPI’s CEO is optimistic about the company’s future. Gino wrote in the same blog post, “We are confident in our vision and strategy, our investors, customers, and partners have validated both of which over the years.” Gino also mentioned that the company plans to focus on growing its enterprise business, which has shown promising growth during the pandemic.
RapidAPI’s forced layoffs are unfortunate but not entirely unexpected, given the pandemic’s economic impact. It is a reminder that even companies valued at $1 billion are not immune to financial hardship during these unprecedented times. However, the company’s CEO remains optimistic about its future and plans to focus on growing its enterprise business despite the challenges.
