Posted on August 03, 2022
Publicly traded Lemonade has laid off about 60 employees of Metromile, the auto insurtech company it recently acquired — adding to the volatility the technology sector has seen over the past 18 months.
In an emailed statement, a Lemonade spokesperson told TechCrunch that it was “able to offer a role at Lemonade to about 80% of the Metromile team,” but that as the deal was “synergistic” as it is able to “operate with fewer people than were needed to staff the two standalone.” Such staffing cuts are not abnormal in such business combinations, even if that is little comfort to those in eliminated roles.
Metromile itself went public via a SPAC (special purpose acquisition company) in February of 2021, with a valuation of over $1 billion. At the close of market on July 27, Metromile’s stock stood at $1.05, valuing the company at just under $137 million. At one time, Metromile was worth more than $20 per share.
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