VTS Cuts 20 Percent of Its Staff in Major Round of Layoffs
By Isabelle Durso August 16, 2024 11:56 am
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Proptech firm VTS has cut 20 percent of its staff in a major round of layoffs for the unicorn company.
After recently raising $125 million in a funding round led by CBRE (CBRE) and acquiring “two major players in the tenant experience space,” VTS decided last week to “reevaluate a portion of [its] team,” a spokesperson for the firm said in a statement to Commercial Observer.
“As we continue to scale, we want to ensure that our growth is strategic and that resources are allocated in the best way possible,” the spokesperson said. “That being said, we’ve made the difficult decision to reevaluate a portion of our team.
“We’re extremely grateful for all the time, energy and creativity that these team members have dedicated into making VTS what it is today,” the spokesperson added. “We’re looking forward to accelerating our investment into the various areas of the business that will best service our customers for years to come.”
The spokesperson did not immediately say exactly how many employees were impacted by the layoffs. The Real Deal first reported the layoffs.
VTS began in 2012 as a leasing and asset management platform, but it hit a major stride in 2019 after closing on a $90 million fundraising round, pitching its platform to help landlords manage the post-pandemic return to office, CO previously reported.
The firm’s valuation hit $1.7 billion after the CBRE-led funding round in 2022, and it reportedly earned more than $100 million in revenue after helping businesses operate their offices following COVID, according to TRD.
VTS’s layoffs also came after it dropped a bunch of money in recent years to pick up competitors.
In 2021, VTS paid about $100 million to acquire fellow proptech startup Rise Buildings and later bought Lane Technologies for $200 million to advance its goal of servicing the technology needs of office workers.
VTS has previously said it is used in more than 87,000 properties across the globe, including in the U.S., the U.K. and Canada, CO previously reported.
Isabelle Durso can be reached at idurso@commercialobserver.com.
