RapidAPI’s Headcount Drops 82% in Recent Layoffs

Rapid, a startup that created an API marketplace valued at $1 billion last year, has laid off 70 more employees less than two weeks after letting go of 50% of its staff. According to an anonymous employee, only 42 people remain at the company, down from 230 in April. This reflects an 82% drop in headcount. The latest round of layoffs impacted all of the company’s remaining workers in Europe and some based in the US.

Founded in 2015 by Iddo Gino, RapidAPI built a platform that helps businesses find and integrate third-party APIs, as well as manage their own usage of their own internal APIs. In March of 2022, it raised $150 million in a Series D round led by SoftBank’s Vision Fund 2. Other backers include Qumra, Andreessen Horowitz, M12 (Microsoft’s Venture Fund), Viola Growth, Green Bay Ventures, and Grove Ventures.

CEO Marc Friend recently took over the role of chief executive of the company. Founder and previous CEO Gino is now a technical advisor, per a company announcement. A source tells TechCrunch that Gino “was removed by the board” and that a sale of the company is expected as a next step, although for a price “well below” the $1 billion it was valued at last year.

Last November, RapidAPI announced it had rebranded to Rapid and that more than 4 million developers used its public API hub. That hub had grown to among the world’s largest, giving developers the ability to integrate more than 40,000 APIs from companies such as Twilio, Microsoft, and Google. At the time, it touted new enterprise customers such as ATA, Poly, Formula 1’s Scuderia AlphaTauri, and Sun Life Financial. It also boasted that it had doubled its company employees in the past year to 200.

The source shared with TechCrunch that the layoffs have been “rushed and messy” with “no support being offered” and in some cases, incorrect terminations being sent out before being rescinded. Rapid has not commented on the latest layoffs, if Gino was removed by the board, or whether a sale is in the works.