Rapid, a startup that built an API marketplace valued at $1 billion last year, is undergoing significant restructuring. According to sources close to the company, Rapid will be cutting 50% of its staff. The layoffs are believed to have impacted around 115 people and are affecting workers across Europe, Tel Aviv, and San Francisco.
Background on Rapid’s Growth
Rapid was founded with a platform that helps businesses find and integrate third-party APIs, as well as manage their own internal APIs. In March of 2022, the company raised $150 million in a Series D round led by SoftBank’s Vision Fund 2. Other investors include Qumra, Andreessen Horowitz, M12 (Microsoft’s Venture Fund), Viola Growth, Green Bay, and Grove Ventures.
Restructuring Efforts
CEO Marc Friend took over the role of CEO last week, replacing founder Iddo Gino, who is now a technical advisor. In an email to employees viewed by TechCrunch, Friend stated that the company tried "to compete on too many fronts" as a product company and has grown large enough to sacrifice agility. Moving forward, Rapid will be disciplined in its product focus and ruthless about customer success.
Layoffs Across Multiple Departments
The layoffs are affecting workers across several departments, including sales, talent acquisition, engineering, product, and marketing. The email from Friend mentioned that a "large number" of employees would be let go over the next few days. A company spokesperson confirmed to TechCrunch that Rapid expects to reduce its team size by around 50% and close all open roles.
Impact on Employees
The layoffs will undoubtedly have an emotional impact on affected employees, who have been part of a rapidly growing company. The decision to cut staff is never easy, but it’s often necessary for companies to adapt to changing market conditions. Rapid has confirmed that it will provide support to departing employees and offer severance packages.
Rapid’s Rebranding Efforts
Last November, Rapid announced its rebranding efforts, dropping the "API" from its name to become simply "Rapid." The company touted new enterprise customers such as ATA, Poly, Formula 1’s Scuderia AlphaTauri, and Sun Life Financial. At the time, it boasted that more than 4 million developers used its public API hub, which had grown to be among the world’s largest.
Conclusion
Rapid’s restructuring efforts are a significant step for the company as it navigates the competitive landscape of the API marketplace. The layoffs will undoubtedly have an impact on employees and stakeholders alike. However, by cutting costs and refocusing its efforts, Rapid can position itself for long-term success in the rapidly evolving tech industry.
Timeline
- March 2022: Rapid raises $150 million in a Series D round led by SoftBank’s Vision Fund 2.
- Last November: Rapid announces its rebranding efforts and touts new enterprise customers.
- July 2022: Rapid opens a new European headquarters in Berlin.
- Last week: CEO Marc Friend takes over the role of CEO, replacing founder Iddo Gino.
Future Outlook
The future outlook for Rapid is uncertain, but by cutting costs and refocusing its efforts, the company can position itself for long-term success. The API marketplace is rapidly evolving, and companies that adapt to changing market conditions will be best positioned for growth.
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