Layoffs at Tractable despite AI Boom: Computer Vision Startup Worth $1 Billion


Computer-vision startup Tractable, last valued at $1 billion, has laid off a substantial portion of its workforce despite the AI boom. The company, which applies artificial intelligence to analyze photos of damage to cars and homes to aid insurers when evaluating repair costs, dismissed 10 to 15 employees in September 2022 and more in January of 2023, reaching seven countries.

Despite the current trend of investors pouring capital into AI startups, Tractable were forced to make the difficult decision to lay off staff in order to promise future growth in 2023. The startup was initially founded in 2015 by CEO Alex Dalyac, chief technology officer Razvan Ranca, and ex-president Adrien Cohen and have offices in New York and London.

In 2021, the startup was able to benefit from the tech upswing and gather sufficient funds to value themselves at above $1 billion when they secured a $60 million Series D investment from New York-based private equity firm Insight Partners and Toronto-based venture firm Georgian.

Regardless, reaping the benefits of the tech bull run has not been enough to ward off the effects of the global tech downturn and the company’s financials for the year ending December 2021 demonstrate an increase in losses. Employees have had to be let go, as VCs are now rewarding profit instead of growth, regardless of losses.

However, the company are confident that their restructuring will put them in good stead for the future. Tractable- which is currently loss-making- still remain a going concern due to a $40 million revolving credit facility from the Canadian Imperial Bank of Commerce.

See also  Will Big Tech Invest in a More Cautious Venture Capital Market?

It is clear that the global economy has had a negative effect on many companies, and Tractable is just one of many inspiring, innovative tech startups that are struggling to keep up with the unpredictable economic environment. Despite this, it appears that the company has been able to make adjustments to their process in order to once again find success in the future.

Frequently Asked Questions (FAQs) Related to the Above News

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

Share post:



More like this

Snoop Dogg Joins Drake & Kendrick Lamar Feud with Hilarious AI Track

Snoop Dogg joins Drake & Kendrick Lamar feud with hilarious AI track. Drake releases Taylor Made Freestyle with Tupac & Snoop Dogg voices.

German Chancellor Urges Fair Trade with China Amid Economic Struggles

German Chancellor urges fair trade with China to address economic struggles. Visit results in progress on trade barriers. Strengthening ties between the two countries.

Elon Musk Takes OpenAI to Court Over For-Profit Shift

Elon Musk sues OpenAI over shift to for-profit model, sparking legal battle in the AI industry. Learn more about the clash here.

Truecaller Director Pragya Misra: From WhatsApp to OpenAI in India

Pragya Misra, the first employee of OpenAI in India, showcases her leadership in the tech industry from her previous roles at Truecaller and WhatsApp.