In a shocking development, West Chester social media startup, LifeBrand has let go of its entire 30-person staff due to escalating financial issues.
Despite the sudden layoffs, CEO Thomas Colaiezzi assures stakeholders that there will be no halt in the company’s regular activities. He express his empathy for the impacted employees, guaranteeing the company’s full support during this taxing period.
The company, currently grappling with a budget deficit of $9 million, has Colaiezzi projecting optimism, with plans to resolve payroll issues through new funding sources by the end of this week. He expresses confidence in various interventions, including resource reallocation, considering government grants, and private donations, to address the financial deficit causing the payroll issues.
Unfortunately, LifeBrand cannot provide severance pay to redundant employees at the moment but is focused on maintaining their benefits through strategic planning.
LifeBrand workforce reduction amid financial crisis
A proposed restructuring plan will reduce the company’s workforce to about 10 to 15 staff.
LifeBrand has managed to overcome previous fundraising issues and unpredictable market setbacks, and raised $6 million in second-phase financing. Colaiezzi remains hopeful of securing more investments, potentially exceeding their initial $15 million target.
The CEO anticipates these future investments will allow LifeBrand to meet its financial obligations and establish a solid fiscal framework. He predicts a profitable rebound for the company by 2024.
