Startup Confession: I need to fire 10 employees to extend my startup runway

Startup Confession is a series where people share confessions about their startup journey with the Tech in Asia community in an anonymous fashion (or not).

If you’d like to share and get advice, drop an email to huiyi[at]techinasia.com.

Photo credit: Pexels

The following is an excerpt sent to the Tech in Asia community team from an anonymous founder.

“Hear me out. I run a startup and this winter is especially harsh, let me tell you. We raised a seed round from a few investors 7 months ago and did extensive hiring – a mix of engineers and sales representatives.

We’re working on a SaaS enterprise product but we have difficulty getting product-market fit. I’ve been thinking of raising another round – but I know it’s gonna be tough especially with this current climate so mission aborted.

I am letting go 10 of my employees in order to extend my startup’s runway for about 4-6 months longer. This extended period allows us to have more time to find product-market fit.

I am torn on how I should break the news to the 10 employees that will be let go. Any advice would be appreciated.”