Emotive Ecommerce Marketing start-up lays off 18% of its staff

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Marketing startup Emotive laid off 30 people this week as the economic outlook continues to deteriorate.

CEO Brian Zatulove said 18% of Company based in SawtelleThe workforce of around 167 people has been reduced, adding in an email that the layoffs are part of a wider plan to generate sustainable revenue.


“Over the past three years, software investors have prioritized growth over profitability. Given developments over the past 6 months amid falling public markets [software-as-a-service] valuations, we made the decision to put ourselves on the path to profitability,” Zatulove said. “Despite all of this, we believe it is essential that the business has a clear path to profitability, with an infinite track, given the uncertain economic climate and future. [and] we are now on this path “after the layoffs”.

Zatulove did not immediately say which positions at the company had been cut.

Two former Emotive staffers posted about their job losses on LinkedIn, including a former Los Angeles-based technical recruiter who started working there last January and a former customer onboarding specialist who worked there for about a year. The two did not return requests for comment.

Emotive is now at least the second SMS marketing company in Los Angeles to suffer layoffs in recent months. The other was Voyage, which laid off around 10% of its staff in June. Still, Zatulove pushed back against the idea that the layoffs at Emotive had anything to do with broader market trends.

While he acknowledged that software stocks were taking a hit, Zatulove said, “our decision to cut actually has nothing to do with broader e-commerce trends. Consumer spending is still healthy from what we see.

Emotive’s core product is a marketing platform that uses artificial intelligence and human analytics to reach customers who use Shopify and other e-commerce sites via SMS, encouraging them to purchase products. The company is also looking to expand in other areas. She launched a conversational advertising platform called Emotional Ads this year and is working on a tool that allows buyers to make payments by SMS.

“As far as our direction goes, nothing changes strategically,” Zatulove told dot.LA. “We will continue to invest there alongside the core SMS product,” adding that “business has grown 3x in the last 24 months. We’re coming off of a good quarter.

In February 2021, the company raised a $50 million Series B funding round. Zatulove said the company has raised $103 million since launching in 2018, which breaks down into $78 million in equity and $25 million in debt.

Announcing the increase last year, Emotive said its plans were to use some of that funding to triple its workforce and opened satellite offices in Boston and Atlanta.

“In our view, the companies best positioned in any broader recession are those that are profitable. Those who own their destiny,” Zatulove said. “We have positioned ourselves financially to control our destiny and be secure through this uncertain time in history.”

This is a developing story. Do you have any advice? Contact Samson Amore at [email protected] or on Signal at (401).287.5543.

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