Silicon Valley startup Bolt lays off one-third of its employees

On May 25, Bolt, a Silicon Valley financial technology company, announced it will be laying off roughly one-third of its employees. 

This will impact about 250 employees out of its 900 person staff, including 130 workers in the U.S. and Canada. 

Ryan Breslow, founder of Bolt, commented on the layoffs, stating “in an effort to ensure Bolt owns its own destiny, the leadership team and I have made the decision to secure our financial position, extend our runway and reach profitability with the money we have already raised.” 

A spokesperson from Bolt indicated that employees in the U.S. and Canada would be included in a restructuring meeting, although the value of severance packages being offered remain unclear. 

Various other companies in the technology sector have also conducted layoffs this year in response to financial hardships.

Severance Pay Facts

If you are a non-unionized Bolt employee working in Canada that has been affected by this layoff, know that you have employment rights and are entitled to full severance pay. To learn more, contact an employment lawyer at Samfiru Tumarkin LLP. 

If a non-unionized employee is fired from their workplace without cause, the company has an obligation to provide them with fair severance, which could be up to 24 months’ pay when factors such as age, length of service, and position are considered. 

If the employer refuses to pay adequate compensation, the employee may be able to claim a wrongful dismissal through an employment lawyer at our firm.

Use our Severance Pay Calculator to get an understanding of your entitlements.

Don’t sign on the dotted line!

Do not accept any severance offer, termination papers or exit agreement that Bolt may provide you with. Once you sign back these documents, you eliminate your ability to negotiate a fair and proper severance package.

Temporary layoffs

A temporary layoff occurs when an employer significantly reduces or completely halts an employee’s job. There is supposed to be a mutual understanding from both sides that the employee will be called back to work, to the same position, after a reasonable period of time.

It is important for Bolt employees to understand that temporary layoffs are considered illegal, unless you agree to the layoff or it is addressed in your employment contract. You have the option to wait to be called back, or you can treat this as a termination through a constructive dismissal and pursue severance.