SA国际传媒

Insurtech company has laid off some employees after closing its聽 acquisition of the company, Lemonade confirmed to SA国际传媒 News.

Lemonade said around 20% of Metromile鈥檚 team was affected. Lemonade is best known for providing homeowners, renters and pet insurance. Metromile focuses on car insurance.

Both companies are fairly new to the public markets. New York-based Lemonade went public in 2020, while San Francisco-based Metromile went public last year in a SPAC deal. Less than a year later, Lemonade announced it would acquire the car insurance provider.

Although it was valued at $1.3 billion at the time of its SPAC deal, it had a fully diluted value of around $500 million when Lemonade announced acquisition plans, according to .

The acquisition closed on Thursday, and Lemonade noted in a press release that 鈥渕ost鈥� Metromile employees will transition to roles at Lemonade, including Metromile CEO , who is now Lemonade鈥檚 SVP of strategic initiatives.

鈥淲e鈥檙e thrilled that we鈥檝e finalized our acquisition of Metromile, and that we’ve been able to offer a role at Lemonade to about 80% of the Metromile team,鈥� a Lemonade spokesperson said in a statement to SA国际传媒 News. 鈥淭he good-news, bad-news is that this acquisition is synergistic, in that the combined entity is better than the sum of its parts, and can operate with fewer people than were needed to staff the two standalones. This makes the deal compelling to shareholders, but clearly is painful to those who weren’t extended an offer to join Lemonade.鈥�

Layoff numbers grow

More than 32,000 employees of U.S.-based tech companies have been laid off so far this year, according to a SA国际传媒 News tally. Those employees range from those at early-stage startups to large public companies like and .

Additionally, some companies like have gone in for their second round of layoffs this summer, after laying off employees earlier this year.

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