Business

Rocket Internet layoffs: Hit many junior positions

The bad mood in the startup scene has also reached the VCs. Global Founders Capital has laid off dozens of employees, most likely inexperienced ones.

Oliver Samwer starts cutting his own team
startup scene

Big tech companies like Klarna and Gorillas have already laid off some of their teams in response to the deteriorating investment climate. Now the discontent in the startup scene has also reached investors: according to information from Gründerszene, the well-known fund Rocket Global Founders Capital has laid off several people itself. The portal of the Finance Forward sector also reports it. Rocket Internet itself declined to comment on a corresponding startup scene request.

As Gründerszene has learned, the dismissed employees are said to be primarily junior employees of the investment team. This was reported by a source close to the company. Rocket boss Oliver Samwer wants to reorganize the organizational structure and rely more on experienced investment managers in the future. Internally, the layoffs are said to have not yet been officially announced.

Rocket Samwer founder sent an e-mail warning to portfolio companies in April: given the economic situation, they should not “delay taking the necessary measures”, otherwise they risk bankruptcy.

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Currently nearly 100 employees

Inflation, rising interest rates, the war in Ukraine and supply chain problems: after a long high, driven by the effects of the pandemic, investors have become more cautious. Instead of rapid growth plans, the focus now is on how start-ups can be successful on their path to profitability.

If an investor like GFC closes fewer deals in the coming months, they also only need a smaller team of analysts – this could be the rationale of Rocket Samwer’s founder behind the decision to lay off parts of his team.

According to Linkedin, GFC currently employs nearly a hundred people, a relatively large number for a VC. According to Finance Forward, more than a third of GFC’s employees will be affected by the layoffs. Rocket’s early stage investor, Flash Ventures, however, is about half of the employees. In Linkedin, nearly 40 people currently list Flash as their employer.

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