Construction startup Katerra lays off 400+ employees

Paal Kibsgaard stepped in as CEO last month

TRD NATIONAL /
Jun.June 30, 2020 09:48 AM
Katerra CEO Paal Kibsgaard (Getty)

Katerra CEO Paal Kibsgaard (Getty)

SoftBank-backed construction startup Katerra has laid off more than 400 employees, one month after new CEO Paal Kibsgaard stepped into the top job.

The cuts amount to 7 percent of the company’s total headcount, according to the Information. The staff affected worked in departments including human resources and civil engineering and mechanical engineering, the publication reported.

The move follows the departure of Katerra co-founder and former CEO Michael Marks, who was replaced last month by Kibsgaard, the company’s former COO. It is also one of several rounds of layoffs since last fall. The firm previously laid off 300 employees in Arizona and 58 in Seattle, the Information reported citing public documents.

Founded in 2015, Katerra received more than $1 billion in funding from SoftBank and employed more than 8,000 people as of December.

But as The Real Deal previously reported, the company struggled with logistical and technology issues as it sought to grow, and failed to complete a slew of projects.

Some of the company’s clients ended their relationship with Katerra, while other clients were found to have ties to the company’s executives. [The Information] — Sylvia Varnham O’Regan


Related Articles

arrow_forward_ios
Surge in South Fork construction work expected to slow down

Surge in South Fork construction work expected to slow down

Surge in South Fork construction work expected to slow down
Liberty State Park in Jersey City in May 2020 (Rich Graessle/Icon Sportswire)

NJ budget could allow private development on public land

NJ budget could allow private development on public land
Connecticut gyms reopen, but few customers come

Connecticut gyms reopen, but few customers come

Connecticut gyms reopen, but few customers come
Justin Bieber (Getty, iStock)

Justin Bieber reportedly drops $375K for a three-week stay in Montauk

Justin Bieber reportedly drops $375K for a three-week stay in Montauk
(iStock, Getty)

Protesters target Bloomberg, Ross and Schwarzman at their Hamptons homes

Protesters target Bloomberg, Ross and Schwarzman at their Hamptons homes
Cars were rented one-way by people fleeing the city for the East End (iStock)

NYC car rentals are expensive and exclusive during the age of coronavirus

NYC car rentals are expensive and exclusive during the age of coronavirus
Governor Ned Lamont (Getty)

Critics: Connecticut uses zoning to stay segregated

Critics: Connecticut uses zoning to stay segregated
William Randolph Heart, Marion Davies and 7 Upper Drive (Getty, Elliman)

Former Hearst home in Huntington Bay hits market for $2.2M

Former Hearst home in Huntington Bay hits market for $2.2M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...