Top Hat layoffs target 10% of workforce to be ‘self-sustaining’

Online education firm Top Hat is laying off 35 employees this week, according to reporting by BetaKit. The cuts, which took place January 30, represent just under 10% of the Toronto-based tech company’s 500-strong workforce.

What’s happening at Top Hat?

A Top Hat spokesperson said that the terminations were connected to ‘business priorities’ rather than employee performance.

“The reduction enables Top Hat to be a self-sustaining business in our upcoming fiscal year,” noted the spokesperson.

This development comes just days after the departure of CEO Joe Rohrlich and CRO Matt Schurk. Top Hat is currently working on installing a new CEO.

The layoffs are the second for the tech company in less than a year. In August, Top Hat laid off 42 employees as part of a “workforce optimization initiative,” the company said.

Termination agreements for Top Hat employees

In Canada, non-unionized employees at Top Hat are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

LEARN MORE
• Severance for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements during a recession

Major layoffs continue

Top Hat isn’t the only major employer reducing its workforce in 2024.

Other big names, including Zoom, Okta, PayPal, Enbridge, Salesforce, Microsoft, eBay, Wayfair, Amazon, YouTube, Google, Instagram, and Discord, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Firm launches $130M class action against Shopify for breach of contract
• Canada Greener Homes Grant: Layoffs When Program Ends
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.