SoftBank's Katerra Lays Off 7% Of Staff As Cuts Continue
Katerra has let go of 7% its workforce in another round of cuts, the SoftBank-backed construction startup said Monday.
The decision follows a series of changes made by the company this year, including previous layoffs, as it enters what newly installed CEO Paal Kibsgaard said is a new phase for the company.
“Katerra is entering a new chapter as we look to accelerate our path toward becoming a self-sufficient, profitable business," Kibsgaard said in a statement.
Katerra's ongoing series of moves included hiring Kibsgaard; in May, he succeeded co-founder Michael Marks as chief executive as the company announced it had fielded another $200M from investor SoftBank. The month prior, Katerra laid off 3% of its existing workforce as it said work began to dry up because of shelter-in-place orders and the economic downturn.
Since its founding in 2015, Katerra, a technology-heavy off-site builder, has aimed to revolutionize the construction industry, earning a valuation of over $4B in the process.
In addition to work in various parts of the U.S., it secured a contract last year with Saudi Arabia to build 8,000 homes. It has continued to face reports of project pullouts, including for a San Diego hotel, and criticism for possible cost overruns.
Katerra's latest round of layoffs amount to more than 400 people, reports The Information, which first broke the story.
Katerra declined to comment beyond its initial statement.
