Layoffs at Next Insurance
According to a report by Calcalist, Next Insurance is laying off 17% of its workforce, about 150 employees. Most of those being laid off are based in the US but it is believed that around 40 of the employees leaving the company are headquartered in Israel.
“It was a very difficult decision, but we are reducing the workforce to adapt to the worsening macroeconomic environment. In the last six years since we were founded, we have invested heavily in building our product base, increasing our customer acquisition channels and in 2021 we tripled the business. The company is on track to reach annual sales of well over $800 million in 2022. However, in reference to the company’s long-term vision, we must shift focus towards profitability. We will be reducing our workforce by 17% with most of the positions impacted being in the U.S.” – A statement by Next Insurance.
Next raised $250 million at a $4 billion valuation in March 2021, bringing the company’s total funding to more than $880 million. Last month, we shared with Coverager Research members that Next has put a hiring freeze in place and is dealing with profitability issues. The company is known for going after general contractors and it is now looking to diversify its customer base by targeting those with a more straightforward risk profile such as accountants and lawyers.