Briefing

SoftBank-backed Katerra lays off over 400 employees

article-aa

The construction startup, which aims to use technology to transform building activities, let go of seven per cent of its workforce one month after new CEO Paal Kibsgaard took the helm. The affected staff worked in departments including civil engineering, mechanical engineering and HR. A Katerra spokesperson said the decision “will help us accelerate our path to profitability, as we continue to pursue the incredible growth opportunity in front of us.” (The Information)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

Talking point: Founded in 2015, Katerra received more than US$1 billion in funding from SoftBank and employed more than 8,000 people as of May through a series of acquisitions, including Vancouver-based Michael Green Architecture, which was involved in helping design Sidewalk Labs’ timber buildings. (Green told The Logic his company was not impacted by the layoffs, noting it was “busy and going well.”) Katerra has struggled with logistical and technology issues, and failed to complete a series of projects, dogged by reports of delays and cost overruns. It has also gone through three CEOs. Despite this, Katerra said last month when it announced its new CEO, that it had 6,000 multifamily units under construction. The layoffs follow several rounds since last fall, when the firm shut its Arizona factory and laid off 300 employees there, as well as 58 in Seattle.