SAN FRANCISCO (KRON) — Online e-commerce platform Wish will be laying off 152 employees from its headquarters in San Francisco, according to a filing on the California Employment Development Department website from its parent company, ContextLogic Inc. The layoffs will go into effect at the end of the month, according to the filing, which was received by the EDD on Monday.
Wish is an e-commerce platform that facilitates transactions between sellers and buyers that was founded in 2010, according to its investor relations page. The company describes itself as “one of the largest global ecommerce platforms,” and says that it connects “millions of value-conscious consumers to thousands of merchants around the world.”
“Wish combines technology and data science capabilities and an innovative discovery-based mobile shopping experience to create a highly-visual, entertaining, and personalized shopping experience for its users,” its corporate profile states.
According to its second quarter 2023 financial results, Wish saw a 42% decrease in revenue year-over-year.
“Our second quarter results reflect a continuingly challenging operating environment,” said Wish CEO Joe Yan in a statement. “Looking ahead to the remainder of the year, we recognize that macroeconomic uncertainties and competitive pressures will likely persist. In response to this dynamic environment and to position Wish to thrive over the longer term, we are taking aggressive actions to significantly lower our cost structure and improve operational efficiencies.”
Wish has a total of 886 employees, according to the Wall Street Journal.
Wish joins a growing list of Bay Area tech companies that have cut jobs in the past 12 months including Intel, Salesforce, Google and Facebook parent company, Meta Inc.
According to a filing with the United States Securities and Exchange Commission, the local layoffs are part of a broader reduction that will see ContextLogic cut about 34% of its global workforce and 41% of its U.S. workforce. Laid-off employees will receive a severance package that includes:
- Severance benefits
- Cash severance payments
- Reimbursement of medical insurance premiums
Wish estimates it will incur about $8.7 million in expenses as a result of the layoffs but expects an overall cost savings of between $43 million and $46 million starting in the fourth quarter of 2023.