These startups raised billions and then laid off thousands. Workers are shocked and frustrated

New York CNN Business — Just a few months ago, discount hotel chain OYO seemed unstoppable. The goal, according to a memo at the time that Fair.com directed CNN Business to from its then-CEO, was to “be a smaller team, focused on doing fewer things well.” One laid off Canvas-turned Fair employee said it was “a rollercoaster.” Meanwhile, Wag, a startup that raised $300 million for itsUber-style dog walking business in early 2018, held a San Francisco holiday party on a Friday where it rented out a lounge with catered food, an open bar and a photo booth, one former employee told CNN Business. “With the change in market sentiment, businesses are facing pressure to reach profitability faster,” a SoftBank Vision Fund spokesperson said in a statement to CNN Business. In an email at the time of the latest layoffs, Wag’s CEO told staffers the company was “amicably parting ways” with SoftBank and said job cuts were an “extremely painful and difficult step” but an “important one for our future.” Brandless, a retail startup that shut down this month, also signaled trouble when it swapped its CEO earlier this year. Son, on the most recent earnings call this month, said: “At the moment, I think that our next fund size should be a little bit smaller, because we have caused concerns and anxiety to a lot of people.” Venky Ganesan, a partner at Menlo Ventures, which invested in some companies SoftBank later funded such as Uber, told CNN Business that while “it’s become really fashionable to go negative on SoftBank and Masa … the story is far from over.” But, even if SoftBank can pull off another massive fund, some workers are having second thoughts about how much a big name and a big checkbook can guarantee success.