Motive (previously KeepTruckin) declared that it will cut its staff by 6 percent and lay off 237 employees due to capital cost restrictions and demand concerns.
Those affected have been contacted through email and will have the option to meet with the People team this week, stated Shoaib Makani, CEO of Motive, in a note to staff.
The layoff occurs just seven months after KeepTruckin changed its name to Motive, highlighting the company’s new direction and expanded focus. Motive, at the time of its rebranding, introduced the Automated Activities Platform, a combination of IoT hardware and AI-powered applications that connect and automate physical operations.
“I realise this may come as a surprise, given that our company continues to expand at a rapid rate and is on the route to profitability. I want you all to comprehend how I got at this conclusion and what lies ahead for us,” Makani stated.
After leaving Covid, the demand for tangible products and services exploded, resulting in an extraordinary increase in the establishment of new businesses and the expansion of existing organisations engaged in the physical economy, as described by the chief executive officer of Motive. “We increased the size of our team from 1,450 to 3,700 so that we could serve our rapidly expanding customer base and pursue the vast opportunities that lay ahead,” he explained.
He stated that this investment has yielded tremendously excellent results. Since the beginning of 2020, the company’s yearly recurring revenue has increased by more than thrice, while its Commercial, Mid-Market, and Enterprise divisions have risen faster than before. Motive’s addressable market grew quickly as the company introduced new products and entered new markets.
While the majority of the company’s investments were wise, it is now evident that Motive overhired in some areas. The SMB portion of the company has enjoyed fast development over the past two years, according to Makani, and Motive has expanded its SMB sales staff accordingly.
“However, the market has just moved. The price of fuel has climbed significantly, the cost of capital has risen, and demand is decreasing. What were once tailwinds for small enterprises are now headwinds. SMB remains a vital component of our overall strategy, but our degree of commitment must correlate with the potential that can be addressed,” Makani remarked.
Next year, the company will need to hire fewer people, which will have a disproportionate impact on its recruitment department. Motive also reduced managerial layers and specialised responsibilities that it believed were no longer necessary for some teams.
Makani observed, “Although there is no ideal method to let people go, our objective is to treat those affected with dignity and provide as much assistance as possible. Depending on location and employment, we will provide severance, faster vesting of RSUs, extension of option exercise periods, extended healthcare coverage, and extra perks.
Regarding future goals, Makani stated that the Motive path has not been a straight line, but that the company’s customer-centric approach has remained constant. “We are the clear technology leader in this evolving $20 billion-plus market and are on track to become market share leaders.” Less than 10% of commercial cars are equipped with an AI dash cam to assist drivers and prevent collisions. We have created the most accurate driver safety platform in the world, and as a result, we will acquire a disproportionate percentage of the remaining market in the future years,” he stated.
He stated that Motive is in an excellent position to seize the market. The company’s purpose to unlock the potential of the physical economy remains a primary focus, and its approach to achieving this objective has remained virtually unaltered.
The greatest approach to recognise the accomplishments of individuals leaving Motive, Makani concluded, is to continue with our mission and serve our clients and each other as best we can.