Foursquare, the location-based tech company that merged with Factual in 2020, is taking significant steps to reduce its workforce as part of broader efforts to cut costs in 2024. According to an internal email from CEO Gary Little, which was reviewed by TechCrunch, the company has laid off 105 employees to streamline operations and establish a more sustainable financial foundation.
The email, distributed to staff on Thursday afternoon, revealed that affected employees lost access to company systems immediately upon being notified. Although Little did not respond to requests for comment by the article’s publication on Thursday evening, the letter provided some insights into which departments were impacted and which initiatives Foursquare plans to discontinue. According to an insider, the layoffs represent approximately 25% of the company’s workforce.
The letter specified that Foursquare would be shutting down its Visits, OCF, and Foursquare City Guide divisions. Additionally, the company is halting work on several other projects, including “Mobile Developers Tools, Geode, and the current version of FSQ Insights.”
Foursquare initially gained prominence during the early days of the iPhone era by encouraging users to “check in” at locations to earn badges, relying on hyperlocal advertising revenue. Over time, it transitioned into an enterprise tech company, providing data leveraged by brands and publishers. For instance, Atmosfy, a short-form video platform that exposes users to local businesses, integrates Foursquare’s API to enhance its functionality.
Following its merger with Factual, which specialized in location software for targeted marketing, Foursquare further solidified its position in this niche market. However, this is not Foursquare’s first round of layoffs; employees were also let go at the time of the merger and during another significant layoff in 2022.
Gary Little became CEO in late 2020, about six months after the merger with Factual was finalized. The financial details of the all-stock deal were not disclosed, but Little’s primary role has been to protect and grow Foursquare’s investment from The Raine Group, a merchant bank where he previously served as managing director. The Raine Group led a $150 million funding round for Foursquare in 2019.
Foursquare has not announced a new funding round since then. The company, now 15 years old, has raised an estimated $400 million throughout its history.
