Publicly traded Lemonade has laid off about 60 workers of Metromile, the auto insurtech firm it just lately acquired – including to the volatility the know-how sector has seen over the previous 18 months.
In an emailed assertion, a Lemonade spokesperson informed Fintech that it was “capable of supply a job at Lemonade to about 80% of the Metromile workforce,” however that because the deal was “synergistic” it is ready to “function with fewer individuals than have been wanted to employees the 2 standalone.” Such staffing cuts will not be irregular in such enterprise combos, even when that’s little consolation to these in eradicated roles.
Metromile itself went public by way of a SPAC (particular function acquisition firm) in February of 2021, with a valuation of over $1 billion. On the shut of market on July 27, Metromile’s inventory stood at $1.05, valuing the corporate at just below $137 million. At one time, Metromile was price greater than $20 per share.
For its half, Lemonade went public by way of a conventional IPO in July of 2020. That firm too has seen its worth erode from simply over $188 per share at one level to $18.40 per share, giving it a valuation of round $1.1 billion as of the time of writing. Its inventory was down 7% by noon Friday and considerably decrease than its 52-week-high of $91.35.
Lemonade introduced on July 28 that it had closed on its buy of Metromile, noting that “In return for below $145 million in inventory, Lemonade receives over $155 million in money, over $110 million in automotive premiums, an insurance coverage entity with 49 state licenses, and precision information from 500 million automotive journeys.
The place did the layoffs land? On nameless skilled community, Blind, there was chatter that Metromile’s CFO, an SVP, and “most of the product, engineering, and design groups” have been let go. Lemonade didn’t affirm specifics round who was affected.
Not less than one software program engineer posted in regards to the layoff on LinkedIn.
Based in 2011, Metromile launched its customized pay-per-mile auto insurance coverage a 12 months later — one of many first corporations to use that mannequin. Its struggles on the general public market haven’t confirmed distinctive; Root and different related corporations have additionally didn’t retain worth after going public.