Career Karma Company Update – July, 2022

Hi Team,

Over the last four years I’ve had the opportunity to share announcements about our progress company-wide to our global team, and as mission-driven founders, Artur, Timur, and I have been proud to consistently share good news.

This time, the news is much harder to share because every single one of you means a lot to us, and we have overcome so many obstacles together.

As we described during our Global Town Hall Meeting on June 16, 2022, there have been dramatic changes in market conditions that no one could have anticipated two months ago.

During that meeting, we shared that this moment feels like deja vu because we have made adjustments in the past that allowed us to successfully overcome the challenges of the COVID-19 pandemic.

What’s different about this recovery is that it will be longer. While the timing of our Series B fundraising has prepared us for this moment, we have to assume that this recovery will take 3-4 years and stretch that cash for as long as possible.

As a result, we’ve spent months analyzing the best way forward. We’ve also done everything in our power to avoid this outcome, but unfortunately, we have made the difficult decision to reduce the size of Career Karma’s workforce. Specifically, 21 people in the U.S. and 39 people from our Global Workforce will be impacted. These changes will be effective immediately as of July 25, 2022.

Career Karma has always prioritized transparency which is why I am going to share with you as much as I can about why we made this decision, and act as a resource for everyone affected.

We waited to send this letter until those who are affected could be notified directly in a conversation with their managers.

With that in mind, we have detailed below the impact this has on our team, and how we plan to take care of those who will be leaving in a way that is consistent with our mission.

What This Means For Our Team

This reduction in workforce has been strategically conducted based on a business model that will sustain us during the downturn, focusing on key players and business functions.

It is important to clarify that those who will be leaving the company should not assume that it is because of their performance.

The 3 key factors that were considered are:

Financial impact to the company
Critical to the operational infrastructure of the company
Skills alignment to the execution of the company’s strategy

How We’re Supporting Each Other

What we do here at Career Karma is help people get their dream jobs and we will do everything in our power to ensure that each member of the CK community will have a safe landing.

This is why we are committed to supporting those who are leaving in a meaningful way:

Cash severance / assistance package
Benefit continuation (Health, Dental, and Vision)
- Subsidized 100% by Career Karma for 3 months
Financial wellness subsidized 100% for 6 months (Northstar)
Company workstations (Ownership – Now Yours)
Career navigation (See Screenshot Below)
- Investor and network support – introductions to portfolio
- Weekly workshops, coaching, self-care
- Job boards and targeted guidance for specific roles
- Job search guidance, interview prep, offer review and negotiation
- Slack alumni group

What Happens Now

Today, team members who will be leaving Career Karma will have already been contacted by leadership. We will continue to have individual conversations with those who have been let go and those remaining to communicate how each person can take advantage of the support services that are available.

In addition, we acknowledge that having team members leave will inherently affect the culture of the company. We will be actively following up with those that remain so that you understand exactly what we will be doing to make sure that you are supported as well.

Many of you know my story, but you may not know that I have had the experience of being laid off. It was through that journey that I met Artur and Timur. In other words, if I had not gotten laid off, there would be no Career Karma.

I know the emotional pain of being laid off, the hardships that come with that, and I have carried that experience with me here to make sure that each person going through this has the support that I wish I had.

I have worked closely with our team leaders to ensure that, as much as we are able to, the emotional and financial hardships that come with being laid off are mitigated – I want to ensure each person is given the best possible support and guidance through this experience.

The Future

Today is going to be hard – there’s no other way to put it. Please remember that our whole business is about community and that won’t change.

We are here to listen to you and get you what you need during this challenging time. We have our alumni group as a resource community for you to stay connected with us and to each other, and again, we are doing everything in our power to connect you to your next opportunity.

Finally, Artur, Timur, and I would like to express our gratitude for all of the hard work that you have done here that has changed so many lives for the better.