Mobile ordering platform Mr. Yum has cut nearly 20% of its staff despite showing promise as one of Australia's high-growth startups poised to become a unicorn by 2030.
Kim Teo, CEO and co-founder of Mr. Yum, announced the move on LinkedIn "in line with a more focused strategy and structure" for customer support and product innovation. The decision was also marked by fears of a possible recession.
Read more: Startup charges $10K to help firms layoff staff
In May, Mr. Yum managed a team of 260 employees but is now getting ready to let go of at least 40 staff members. The job cuts are a reminder of how businesses on track for expansion are still vulnerable to market shock.
While the retrenchment will likely be the last one before Mr. Yum refocuses on growth, Teo said the company had been expanding the workforce rapidly to keep pace with the upturn in 2021. At the time, the company had also raised $89m in a Series A funding round.
Read more: Better.com CEO returns, fuels Great Resignation
The layoffs came just days after Mr. Yum was selected by the government of Victoria for its 30x30 program, which aims to scale a handful of ventures to become billion-dollar companies by 2030.
Dismissed employees will be given severance pay worth six weeks; mental health support; and "accelerated" stock option vesting.
Mr. Yum will also provide career transition support for laid-off employees, Teo said.