Thumbtack, a San Francisco online services marketplace, laid off 250 employees after revenues plunged due to the coronavirus, according to a blog post from CEO Marco Zappacosta.
Zappacosta said demand for services on Thumbtack in San Francisco had dropped by 61% and overall revenue had declined more than 40%.
The company matches customers with professionals ranging from DJs to carpenters, but a sharp decline in demand for in-person services forced the company to make the cuts. Shelter-in-place orders in the Bay Area and elsewhere are now being extended until at least May.
Employees in San Francisco and Salt Lake City were affected by the layoffs, according to Thumbtack spokeswoman Amy Swanson.
Swanson did not say how many jobs had been cut in San Francisco but said every department of the company had been hit by the layoffs.
“In terms of types of work hit the hardest, jobs for DJs nationwide have dropped 82%, house cleaning has dropped 65%, and interior painting has fallen 53%,” Zappacosta wrote.
Two weeks ago, the company reduced marketing spending and stopped hiring as well as cut internal programs for employees but was still losing money too quickly. It has also cut executive salaries.
The company is providing workers with severance packages that include both cash and equity compensation, Zapapcosta wrote. The company is also working on features that allow professionals to sell their services remotely.