Instead, tech valuations have taken a substantial hit in both public and private markets, as interest rates rise and the cost of capital goes up.
“Conditions changed faster than expected and those assumptions I made were wrong. I have many learnings to take into the next phase of building Linktree. That next phase involves narrowing our focus on our long-term strategy by reducing roles that are no longer aligned with our roadmap,” Mr Zaccaria said.
“Friday will be a company-wide mental health day at Linktree. For a company like ours, so focused on culture and comradery, this will be difficult news. I don’t expect anyone to be their normal selves.”
The company, which was founded by Mr Zaccaria alongside his brother Anthony and their business partner Nick Humphreys in 2016, has a host of high-profile users including Selena Gomez and Dwayne ‘The Rock’ Johnson and brands such as TikTok, Red Bull and HBO.
It is just one of a growing group of tech start-ups and so-called scale-ups to reduce its headcount.
Other local tech companies to make layoffs include Sendle, Voly, 5B Solar, Brighte, and Eucalyptus. A number of start-ups have also collapsed under the funding market pressures, including grocery delivery players Send and Quicko, as well as property tech company Yabonza and IPO hopeful Metigy.
Linktree is providing the staff made redundant with an average payout of 11 weeks, accelerated vesting of their options, health insurance for US employees until October 31, mental health support for three months, and all their laptops and work from home equipment will be gifted to them.
Its talent acquisition team will also help the former employees try and find new jobs. On Friday, the company will publish an opt-in Airtable with details of the redundant staff in an effort to encourage other employers to snap up the talent.