Shyp announced today that it has laid off eight percent of its “teammates” in an effort to propel the on-demand shipping and courier service toward profitability this year. A representative declined to provide specific numbers about the departures, instead referring VentureBeat to CEO Kevin Gibbon’s post on LinkedIn. The layoffs impacted the entire organization, including those on the business side, in operations, and couriers.
“I am humbled to have worked with these people, and am sad to part ways with them,” Gibbon wrote. “Shyp wouldn’t be where we are without them, and for that, I’m eternally grateful. The Shyp community is committed to helping those impacted by this transition in every way possible, which of course includes helping them find new jobs. While I wish we didn’t have to say goodbye to some of our friends, I am confident about our path forward knowing this is what’s best for the business and its constituents.”
Specializing in delivering packages and goods on demand, Shyp has expanded over the past year and even struck some interesting partnerships, including with eBay, Banana Republic, and Goodwill. But these efforts are just part of Gibbon’s strategy to make 2016 the year the company becomes profitable, three years after its founding.
In pursuit of that goal, Shyp has rethought its plans, including its operations in Miami; reduced the cost of running its business in San Francisco; launched new tools for customers, like return shipping service and tracking tags for recipients; added fees; and made other investments in its core business. However, Gibbon explained that this is only scratching the surface.
Shyp has raised more than $62 million in funding from Kleiner Perkins Caufield & Byers, Sherpa Capital, Homebrew, Draft Ventures, and a bevy of angel investors.