Changes to our team

Today I’m writing with sad news, as we had to conduct a layoff and part ways with a number of our employees. Each of these individuals has been instrumental in building Dover into the company we are today, and they’re all talented, motivated and excellent people that I’d work with again. Because we’re in the recruiting industry ourselves, we know how challenging this process is, and we wanted to be extra transparent about why we made the decision and how we communicated it to the company and the affected individuals (see below).

Q1 was a record quarter for Dover— we grew more than we ever had, both in dollars and percentage terms. We hired with the expectation that we could maintain that growth curve, and if not for the recent market downturn and hiring freezes, I think we could have. Unfortunately, we, like everyone, are not immune to the conditions in the world.

To our customers: we are working hard to ensure there is no disruption to the level of service you’ve come to rely on us for. We have an enormous opportunity to reshape the fundamentals of how companies hire talent, and we’re going to continue to push forward on this.

Max Kolysh

CEO



Here is a copy of the internal email we shared with our team:

Hi everyone,
Over the last few months, you have probably noticed that we’ve been having many discussions around our recent decline in revenue and Dover’s recession strategy. The economy is in a rough position, and it’s impacting nearly every company. Recruiting is an especially volatile portion of the market, and it’s unclear when it will stabilize. Most of our customers have significantly slowed down hiring, making it harder to close new customers and retain existing customers. As with any market pull-backs, no one knows how long it will last. We believe that Dover’s Q2 performance should primarily be attributed to macroeconomic shifts. As such, our belief in our mission and vision has not shifted.
We’ve taken many measures over the past few months to cut costs and increase the efficiency of our business. However, to get the business into the strongest possible financial position, we’ve had to make the very difficult and sad decision to do a layoff.
23 people across the company will be affected by the layoff. If you are one of those affected, you will be receiving an email immediately following this one. One of the founders + your manager will also be giving you a call in the next few hours to speak with you directly. We will be providing severance as well as other offboarding benefits that we will go over in the calls.
How we came to this decision
In Q1, we grew ██%, which was a record growth quarter for Dover. We expected Q2 to be similar, but unfortunately that didn’t pan out. Since then, we’ve seen our month-over-month revenue either stay flat or decline for the past four months.
As soon as our operating model started projecting a revenue decrease back in April, George, Anvisha and I started meeting weekly to discuss our financials. The first thing we executed on was reducing non-headcount spend, like marketing spend, new software purchases and some services and contractors. We also removed future headcount from our hiring plan. We created multiple scenarios of financial projections, and what our plan would be in each scenario to ensure we set up Dover for long term success.
About a month ago, we realized that we’d likely need to take more aggressive measures to cut ongoing spend as our team size has gotten out of sync with our customer base. We were tracking at around $██/mo in net burn (total revenue minus total expenses), and it was unclear how much we’d see our revenue drop before it stabilized. We have been hiring in anticipation of our growth to be similar to what it was in Q1, but it was clear this wouldn’t be the case in the short term, given the general market pullback and hiring freezes across so many companies. We exist only because our customers exist, and when our customers suffer, we suffer too.
How we decided who would be affected
After determining the headcount of each department that our business could support, we had to create a list of who should be part of the layoff in those departments. I worked closely with team leads and department heads to make this list.
I want to make one thing clear: I personally reviewed and approved each person on the list. If you were one of the people affected, it’s because I decided it. In most cases, your manager argued to keep you, but given the circumstances I had to override them. I take full responsibility for it.
Next steps for those affected
First of all: I’m really, truly sorry that we had to make this decision. I know this is very painful news to hear and there may be a lot of uncertainty for you in the coming weeks. We will do everything we can to support you––more to come on this later today.
I’d also like to say that I am very lucky to have worked with all of you, and I really thank you for being a part of Dover.