Seattle-area used goods marketplace OfferUp is conducting another round of layoffs as it seeks to simplify its business and get back to focusing on the local user-to-user experience.
In a memo to staff on Wednesday (in full below), CEO Todd Dunlap outlined planned changes that included downplaying shipping as an offering; modernizing the OfferUp app; increasing marketing spend; and consolidating local business offerings.
“As we implement a simpler structure with fewer offerings, we need fewer people to operate,” Dunlap wrote. “And if we’re going to maintain profitability while investing more in growth, we need to free up cash flow.”
The company did not disclose the number of employees affected or the number of remaining staff. OfferUp has 435 employees, according to LinkedIn.
The layoffs come less than a year after OfferUp cut 22% of its staff last December, in a move where Dunlap cited macroeconomic trends such as programmatic ad rates that affected some of the company’s revenue lines.
Founded in 2011, OfferUp competes against Craigslist, eBay, Facebook and other marketplaces where users buy and sell goods. The company says it facilitates 30 million transactions on its platform annually and is currently ranked No. 24 on the GeekWire 200, our index of Pacific Northwest startups. It generates revenue in part by charging sellers for premium features and broader reach.
Dunlap, a former exec at Xbox and Booking.com, took over for OfferUp from founder and former CEO Nick Huzar in 2021. Huzar now leads EV charging startup Juicer Energy and is co-founder of Gone.com, a logistics-driven marketplace reimagining the secondhand goods economy.
Read Dunlap’s complete memo to OfferUp staff:
Team,
Today we made changes no leader wants to make. Earlier this morning, I let some of our colleagues know their roles have been eliminated. For everyone who is still with OfferUp, I want to explain why we did this, how we supported those leaving, and what comes next for us.
Why we made this decision
We are resetting the company to be more focused on reaching and serving the local communities that rely on OfferUp and that helped make OfferUp what it is today. The work in the last year has provided us with critical signal for a few important principles:
— Our strength is in local;
— We can reach local users and drive engagement with compelling marketing in a new mix of channels;
— Local businesses can be an important part of our platform, but we must be thoughtful about the balance between business offerings and the core user-to-user interactions.
As a reaction to this signal, we’re taking several steps to embrace these principles:
— We are deprecating our shipping offering in order to provide a more focused and specific local experience;
— We are exploring ways to modernize the app experience to meet today’s expectations;
— We are bolstering the capabilities of our marketing team, and we intend to significantly increase our marketing spend to take advantage of the opportunity to reach users in new ways;
— We are consolidating our local business offerings into one group to provide a cohesive strategy that enables auto dealers, storefronts, service providers, employers, and landlords to thrive and provide value to our local users.
These principles led to the decision to reduce our headcount for two reasons: (1) as we implement a simpler structure with fewer offerings, we need fewer people to operate, and (2) if we’re going to maintain profitability while investing more in growth, we need to free up cash flow.
Our new structure also necessitates a new way of working. At heart, we are a startup—albeit an older, wiser one. In the weeks ahead, we will lean into a leaner operating model built on clear priorities, close collaboration, and shared decision-making principles. I’m energized by what this shift can unlock for us, and I hope you will be, too.
What you can expect next
— Tomorrow’s all-team: I will walk through the plan, changes to my leadership team, and how we’ll measure progress
— Team-specific follow-ups: Leaders will convene their teams to clarify focus and ownership, and we’ll follow up with transparent roadmaps that line up across the org
— Support for teams: We’ll work together to define clear goals, make faster decisions, and cut inefficient processes so you can get time back for building
Our departing colleagues
I want to convey our deep gratitude to our departing teammates. They have made many meaningful contributions to our product, our business, and our community, and we have tried to honor those contributions with support through this transition:
— Severance – We are providing severance in an amount equivalent to 10 weeks, plus additional amounts for tenure over 5 years.
— Healthcare – We will cover the full cost of COBRA coverage through the end of the year.
— Outplacement Services – Our departing colleagues will have access to career services through a company that provides career transition and job placement services.
— Laptops – Our colleagues will keep their OfferUp-issued computers at no cost.
For most of those impacted, today is their last day at OfferUp. We have asked a few teammates to stay on to help teams transition over the next few months. Please join me in extending thanks and support to all of these colleagues in the days ahead.
I know this is a difficult day and the work ahead will be hard, but it’s the right work. OfferUp belongs in the world. I believe in that, and I believe in this team. A world of local opportunity awaits.
Looking forward to spending time together tomorrow—
Todd
