In June 2023, Berlin-based startup Coachhub, the European market leader in the video coaching segment for employees, announced a second wave of layoffs within a few months, affecting 10% of its workforce. These layoffs come as the company undergoes structural changes to ensure sustainable business development amidst rising interest rates, high inflation rates, and challenging financial market conditions. In this article, we'll discuss what happened, why it happened, and the potential future impact of these layoffs.
CoachHub's decision to lay off 10% of its workforce was driven by the need for structural changes to ensure sustainable business development. The company has been affected by economic pressures such as rising interest rates, high inflation rates, and challenging financial market conditions in Europe and the US.
As a result, CoachHub decided to reduce its global team by about 10% to adapt to these external factors. A company spokesperson confirmed the layoffs and emphasized the importance of making these structural changes to maintain the company's long-term viability.
Following the layoffs, CoachHub is expected to experience cost reductions and move toward profitability. It is clear that the company aims to achieve financial stability in both the short and long term by focusing on a leaner organizational structure.
Strategically, CoachHub is making adjustments to its leadership structure, with Matti Niebelschütz taking over as the sole CEO and his brother Yannis assuming responsibility for the sales department. CoachHub will be focusing on post-layoffs, the company's realignment of investments and resources is expected to optimize its operations for continued growth in the competitive coaching industry.
The impact of CoachHub's layoffs on the HR industry may lead to increased competition among coaching platforms and a potential shift towards leaner business models. As companies in the sector face economic pressures, they may prioritize cost reduction and operational efficiency to maintain profitability.
This could result in a greater emphasis on digital solutions and remote coaching services, as well as a potential consolidation of smaller players in the market. Ultimately, the layoffs at CoachHub may serve as a catalyst for change, driving innovation and adaptation within the HR industry.
CoachHub's layoffs were driven by economic pressures and the need for structural changes to ensure sustainable business development. The company aims to achieve financial stability through cost reductions and a leaner organizational structure. These developments may lead to increased competition among coaching platforms, a shift towards leaner business models, and a greater emphasis on digital solutions. CoachHub's future actions could potentially influence the broader HR industry, driving innovation and adaptation.
