GoMechanic lays off 70% after investors discover ‘founders knowingly stated false facts’ – businessupdates.org

by Ana Lopez

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Hello Crunchers! The heavy freight train of tech news continues to roll over the rails (and sometimes off the rails).

Apropos tracks, we’ve been a bit in love with it this absolutely gorgeous music video from Ren this week. It’s full of surprises and powerful bits — give yourself a 9-minute break and give it a listen! — Christine and Hey

The businessupdates.org Top 3

  • More layoffs: Sequoia-backed GoMechanic is latest to make sweeping layoffs after funding failed to materialize on time, Manic reports. The India-based auto service company is cutting 70% of its workforce. But wait, there’s more: GoMechanic’s founders misrepresented financials to investors, with GoMechanic co-founder Amit Bhasin saying the startup “made serious errors of judgment when we followed growth at all costs, especially with regard to financial reporting, which we deeply regret.”
  • Can your robot do this?: In the latest Atlas video from Boston Dynamics, we see the robot running, jumping, and now grabbing and throwing things using hands. Mat shares more.
  • If you’ve never seen a car that resembles its name, now you have: Roman check out Kate, a new French automaker developing small cars for everyday use, from commuting to driving to the beach. They remind us of a really fast golf cart, but cuter.

Startups and VC

At a press conference on Wednesday, the US Justice Department announced that it has arrested Anatoly Legkodymov, founder of crypto exchange Bitzlato, for allegedly handling more than $700 million in illicit funds. Amanda reports. “The ministry worked overnight with key partners at home and abroad to disrupt Bitzlato, the China-based money laundering machine that fueled a high-tech axis of crypto-crime, and to expose its founder, Russian citizen Anatoly Legkodymov, arrest,” said the deputy attorney general. Lisa O Monaco.

Many more things are happening in the world of startups these days:

Dear Sophie: What are some quick options for hiring someone with an expiring grace period?

lone figure at the entrance of a maze hedge with an American flag in the middle

Image Credits: Bryce Durbin/businessupdates.org

Dear Sophie,

I am a co-founder of a very early stage startup. My co-founder and I are considering hiring a third co-founder, who was recently fired. She is currently in the United States on an H-1B with a grace period expiring soon.

What are the fastest, least risky immigration options we should consider? What’s up with potential USCIS filing fee increases?

– Careful co-founder

Three more from the TC+ team:

businessupdates.org+ is our membership program that helps founders and startup teams lead the way. You can sign up here. Use code “DC” for a 15% discount on an annual subscription!

Big Tech Inc.

The layoffs just keep coming in Tech World. The latest is Microsoft, which is cutting 10,000 jobs, reports Paul. The company already made some layoffs last year, but the latter accounts for a significant portion of the workforce – 5%. CEO Satya Nadella echoed other tech companies that recently laid off by saying the company accelerated its growth as its customer base grew, but when that slowed, Microsoft had to do the same.

Cybersecurity company Sophos is making a similar move, laying off 450 employees worldwide, or about 10% of its employees. Jagmeet reports.

Meanwhile, in happier news, Apple has a brand new HomePod with better sound and smarts. Darrell writes. And now that you know this Brian has some thoughts on the newly returned smart speaker.

Here are five more for you:

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