Online vehicle retailer Clutch laying off 65% of staff, refocusing business

Grappling with challenging economic conditions, Clutch has announced deep job cuts.

In a letter to staff on Jan. 17, CEO Dan Park said the Toronto-based online vehicle retailer is laying off 148 employees, or approximately 65 per cent of its workforce, as the company refocuses its business in Ontario and the Maritimes.

“Unfortunately, due to the challenging market conditions, the certainty and timing of the close [of a $95 million Series C funding round] has been put into question,” Park said.

In addition to Ontario, Clutch has facilities in Nova Scotia, Saskatchewan, Alberta, and British Columbia.

It remains unclear if the reduction will affect employees across the country or only in specific provinces.

The latest round of cuts comes just months after the company laid off 76 workers in June.

Prior to the June layoffs, reports claim that Clutch employed a total workforce of more than 300 people.

Tech layoffs ramping up

Clutch isn’t the only North American tech company that’s kicking off 2023 with significant layoffs.

Benevity, Lightspeed, Microsoft, Thinkific, Cloud Software Group, Amazon, and Salesforce are scaling back their staffing levels as they continue to monitor market conditions.

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Termination agreements for Clutch employees

As part of the layoff announcement, Clutch said it will provide affected staff with “severance packages that exceed requirements, extended health benefits, and support to help them as they seek new positions.”

In Canada, non-unionized employees and senior executives at Clutch are owed full severance pay when they lose their jobs due to downsizing or corporate restructuring.

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

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

LEARN MORE
• Severance packages in mass layoffs
• Severance for technology industry employees
• Rights to severance for provincially regulated employees

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, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper compensation if it falls short of what you are actually owed.

If you aren’t given the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.