A startup that’s like Airbnb for childcare cut 25% of its staff, and some employees say it’s a ‘desperate’ attempt to juice its business for investors

Wonderschool, a startup that helps parents find day care, has laid off about 25% of its staff in a “desperate” attempt to cut costs and increase revenue, according to several employees who were recently let go.The Andreessen Horowitz-backed startup is downsizing at the same time it plans for a major expansion in 2020.Some former employees…

A startup that’s like Airbnb for childcare cut 25% of its staff, and some employees say it’s a ‘desperate’ attempt to juice its business for investors

Wonderschool, a startup that helps parents find day care, has laid off about 25% of its staff in a “desperate” attempt to cut costs and increase revenue, according to several employees who were recently let go.The Andreessen Horowitz-backed startup is downsizing at the same time it plans for a major expansion in 2020.Some former employees said they’re worried about how a smaller team will maintain the quality of the service. The company has scaled back its hands-on approach of having employees visit day-care centers in person, and instead has them vet providers remotely, they said.However, the team responsible for setting standards and evaluating the childcare providers on the app remains intact, and the company said it was working to maintain the standard of quality.”Quality is our top priority. We are actively working every day to determine the best combination of in-person support versus remote support,” Wonderschool CEO Chris Bennett told Business Insider.Click here for more BI Prime stories.Wonderschool, a startup that’s most easily described as Airbnb for childcare, has laid off about 25% of its workforce as it fixates on increasing revenue growth, according to several employees who were let go.The job cuts affected 18 employees, our sources said, and about half of them worked in operations — an umbrella organization that’s tasked with adding new childcare providers as partners, offering customer support to parents, and growing the company in new markets.Several sources said they were told the reason for the layoffs was a change in strategy, though they felt the explanation was vague. It seemed clear to most of these now former Wonderschool employees that the company wanted to cut costs and increase revenue before it tried to raise a Series B funding round early next year.Wonderschool is working to change the economics of the profession for hundreds of childcare providers in California, New York, and Colorado. The company helps them fill capacity by listing their centers on its website and mobile app and letting parents book tours and apply. It also has services to assist with other parts of running a small childcare business, including accounting, licensing, and marketing. It takes a cut on every tuition payment on the app.The startup has raised $24 milli
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