Eero Inc., a Wi-Fi startup company, quietly laid off 20% of its workforce as it looks to focus on its core products. In the spring of 2017, Eero had around 150 employees, meaning a 20% reduction in headcount translates into around 30 employees. The decision to lay off 20% of the company comes after Eero eliminated “one new product.”
Commenting on the layoffs, a spokesperson said, “Over the past year we explored several related projects, and we’ve now made the tough decision to eliminate one new project in favor of greater focus on our core business. We do not take this lightly, and unfortunately this shift means about 30 colleagues will no longer be working at eero.”
The layoffs must have come as a surprise to employees. In a December 31 blog post entitled “Looking back on 2017,” the company noted that, “2017 included many exciting moments for us here at eero. We shipped our second generation product and first premium subscription service, expanded retail distribution, and learned some interesting tidbits along the way.”
The blog ended with, “Thank you to everyone who has supported us, and happy holidays. Here’s hoping for an excellent, buffer-free 2018 to all!”
The San Francisco-based company, which launched in 2015, manufactures easy-to-use wireless Wi-Fi products that provide total coverage of any space or any size. In 2017, Eero unveiled two new hardware products which plug directly into wall sockets–a much more convenient approach than using bulky corded means.
Being named the world’s best reviewed Wi-Fi product has helped Eero raise plenty of capital since 2015. It raised $90.0 million from First Round Capital, Menlo Ventures, AME Cloud Ventures LLC, Initialized Capital Management LLC, Homebrew Ventures, and others. Most recently, in May 2016, it received an additional $50.0 million in funding.
The money has helped the company develop its products and get them into online and physical stores. Its products are available at Best Buy and Amazon (NASDAQ:AMZN).
Like any tech company, Eero Inc. is facing stiff competition from Alphabet Inc (NASDAQ:GOOG), Samsung Electronics Co Ltd, and Linksys (owned by Belkin), brands that provide the same kind of service and have bigger budgets and brand recognition.
This competition is likely behind the company’s decision to lay off 20% of its staff and focus on its core products.
“San Francisco Wi-Fi system maker eero lays off 20 percent of its staff,” San Francisco Business Times, January 4, 2018.
“Wi-Fi startup Eero lays off 30 employees,” TechCrunch, January 4, 2018.
“Looking back on 2017,” Eero Inc., December 31, 2017.
“eero inks $50 million funding deal with Menlo’s Opportunity Fund, plans to sell products at Best Buy,” TechCrunch, May 25, 2016.