CEO of $4.5 billion tech firm slams his peers over layoffs: 'These are humans'

HELSINKI, Finland — The brag of European integer security startup Wefox offered a damning effect to tech companies that have laid disconnected workers en masse.

The likes of Meta, Amazon and Twitter person laid disconnected tens of thousands of employees successful effect to unit from investors, who privation to spot them chopped costs to upwind a planetary economical downturn.

Swedish fintech steadfast Klarna was among the archetypal large employers successful tech to slash jobs this year, cutting 10% of its workforce successful May. Several companies person followed suit, from those successful Big Tech to venture-backed startups similar Stripe.

Julian Teicke, CEO of Wefox, told CNBC helium is "disgusted" by what helium views arsenic a disregard by immoderate of his peers for their employees.

"I'm a small disgusted by statements like, 'never miss a bully crisis' [or] 'we person to chopped the fat,'" Teicke said successful an interrogation connected the sidelines of Slush, a startup league successful Helsinki, Finland.

Venture capitalists person been advising startups successful their portfolios to chopped costs and frost hiring arsenic economists pass of an impending recession.

Following a bumper 2021 afloat of IPOs and mega backing rounds, immoderate of the astir invaluable startups successful Europe laid disconnected important numbers of unit and drastically scaled backmost their enlargement plans.

At the commencement of Slush connected Thursday, Sequoia Capital spouse Doug Leone told founders and investors they should clasp opportunities brought by challenges successful the broader economy.

Forecasting a prolonged recession worse than the 2008 oregon 2000 crises, Leone said immoderate companies volition look stronger than others. 

"You person a large accidental successful beforehand of you, if you play your cards right," helium said. "You person an accidental to walk 10 cars. Do not discarded a bully recession."

In immoderate eyebrow-raising comments, Sebastian Siemiatkowski, CEO of Klarna, said his steadfast was "lucky" to chopped jobs erstwhile it did. Siemiatkowski said that astir 90% of the radical laid disconnected had since recovered caller jobs.

"If we would person done that today, that astir apt unluckily would not person been the case," Siemiatkowski told CNBC successful an interview.

Without naming names, Teicke slammed the tech manufacture implicit its attack to wide redundancies.

"These are radical that person possibly discontinue different jobs to articulation your business. These are radical that person possibly moved to different places due to the fact that of you. These are radical that person possibly ended romanticist relationships."

Teicke said managers person a work to support their employees.

"I judge that CEOs person to bash everything successful their powerfulness to support their employees," helium said. "I haven't seen that successful the tech industry. And I'm disgusted by that."

"These are humans," helium added.

Wefox is simply a Berlin, Germany-based steadfast that connects users seeking security with brokers and spouse insurers done an online platform. The institution was valued by investors astatine $4.5 cardinal successful a July backing round.

Wefox says its concern is "crisis-resistant." But chap insurtechs person had to marque cuts lately, including Lemonade, which shed 20% of unit astatine Metromile, a car security institution it acquired, successful July.

Asked whether his ain steadfast would person to marque redundancies successful effect to shifting capitalist sentiment, Teicke said his steadfast was "cautious" astir the macroeconomic situation but had nary plans for wide layoffs.

"I don't judge successful wide layoffs," Teicke said. "We're going to absorption connected performance, but not connected wide layoffs." Wefox is "very close" to achieving profitability adjacent year, helium added.