Techstars is laying off 17%, ending its J.P. Morgan-backed programs
Techstars is reducing its workforce by 17% and discontinuing the AdvancingCities program, primarily affecting engineering and support roles, while shifting focus to better support founders after previous layoffs.
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Techstars is implementing a 17% workforce reduction and will discontinue its $80 million AdvancingCities program, which was backed by J.P. Morgan, once the fund is fully deployed by the end of this year. The AdvancingCities program, initiated in 2022, aimed to support diverse founders through accelerator programs in various U.S. cities. However, the partnership with J.P. Morgan deteriorated, leading to uncertainty about the future of around 20 employees involved in the program. Techstars co-founder and CEO David Cohen attributed the layoffs to overexpansion and indicated that most cuts would affect engineering, support services, and sales teams, while accelerator program staff would largely remain intact. This restructuring follows a previous 7% reduction in January and comes during a significant transition for Techstars, with Cohen resuming the CEO role after Maëlle Gavet's departure in May. Cohen emphasized a shift in focus from scaling to enhancing support for founders. J.P. Morgan confirmed its commitment to supporting diverse funding initiatives despite the program's closure.
- Techstars is laying off 17% of its workforce.
- The AdvancingCities program, backed by J.P. Morgan, will be discontinued.
- The layoffs primarily affect engineering and support roles.
- Techstars is shifting its focus from scaling to better supporting founders.
- This follows a previous 7% workforce reduction earlier in the year.
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