Madison-based tech startup Fetch Rewards Inc. has cut 100 positions across all locations in an effort to restructure the organization and preserve the company's "overall health,” according to a statement issued Tuesday.
That statement said Fetch Rewards is one of several tech companies that was impacted by the collapse of Silicon Valley Bank, but the decision to restructure the organization had already been in the works prior to the collapse. Larger macroeconomic concerns were key factors in the decision to restructure the startup.
"Fetch has grown significantly over the past few years, and we've scaled headcount accordingly," said the company on Tuesday. "But like many in the tech space, the overarching macroeconomic conditions have caused us to re-evaluate the team structure. As of now, the company is in a strong position to continue to scale and serve our growing user base and roster of partner brands. Fetch is well positioned for success in the rest of 2023 as we move toward sustainability. (There are) no current plans for an exit, but we continue to work toward optimizing our business such that we're in the best position when the time comes."
Out of the 100 employees who lost their jobs, 16 were in Wisconsin. The company said it does eventually hope to bring back several jobs as it is hiring for new positions during the restructuring process.
Fetch said it is working closely with employees who were let go and is providing them with severance, career coaching and continued health care through COBRA.
Fetch Rewards is an app that asks users to upload pictures of their grocery receipts in return for points that can be redeemed for rewards at those retailers. The startup has partnerships with thousands of grocery stores, including Kroger, Costco, Aldi, CVS and Target. It also lists over 500 global brands.
As of last April, the company had 713 employees in 43 states. At that time, Fetch closed a $240 million funding round and doubled its valuation to over $2.5 billion. The funding was to be used for supporting the startup’s “aggressive growth.”
Fetch appeared on the Inc. 5000 list of fastest growing private companies in America in 2020, ranking 116th with a three-year revenue growth of 3,161% – the highest-ranking company in Wisconsin that year.