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Background check platform Checkr lays off 32% of its workforce, latest valuation at $5 billion

Checkr, a 10-year-old startup that provides employee background checks and was last valued at $5 billion in April 2022, has laid off 382 employees as the company is not hiring in large numbers.

TechCrunch has learned exclusively that Checkr made layoffs across all departments and at different levels on Tuesday. The San Francisco-based startup confirmed the layoffs in an email.

“In response to economic conditions impacting hiring at the company, we have made the difficult and painful decision to reduce the size of our team. This will allow us to operate more efficiently and ensure the long-term health of our business,” a Checkr spokesperson said in a statement .

The layoffs, which affect 32% of the company’s employees, come nearly two years after Checkr announced its acquisition of Inflection. Inflection is the startup behind GoodHire, a background check platform for small and medium-sized businesses. At the time, The Wall Street Journal reported that the deal was worth $400 million.

Backed by prominent investors such as Durable Capital Partners, Fidelity Management & Research, Franklin Templeton, BOND and Coatue Management, Checkr allows companies to conduct background checks by checking driving and criminal records as well as basic identity verification of potential employees. The startup offers an online form that allows companies to run these checks or use its API, which can be integrated into their recruiting systems or onboarding software including Workable and Zenefits.

Founded in 2014, Checkr’s major clients include Uber, Instacart, Netflix, Adecco, Airbnb and Coinbase. By 2022, its customer base will grow to tens of thousands of companies, ranging from small and medium-sized businesses to Fortune 500 employers. Initially, the startup was limited to Silicon Valley, but expanded beyond it in 2016.

The spokesperson said Checkr has provided affected employees with at least 10 weeks of severance and health insurance, as well as occupational and mental health support.

The startup did not respond to questions about its runway and fundraising plans. It has raised $679 million to date, with its last funding round of $250 million announced in September 2021.

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