Unicorn layoffs prompt more startups to consider acqui-hiring

Alex Zajaczkowski

was just months into her role at Toast

, a restaurant point-of-sale software company, when she was let go during COVID-19 layoffs. Toast, last valued at $5 billion, cut 50% of its staff

through layoffs and furloughs.

Zajaczkowski said she started applying for jobs within a week.

“I think I got on the boat a little bit quicker than others because I wanted that security a little bit faster,” she said. She and former Toast colleagues formed a Slack to communicate about layoffs, their job searches and what lay ahead. Toast created an

opt-in spreadsheet

for recruiters that listed laid-off employees.

The sheet brought Zajaczkowski to

Stavvy

, an online mortgage startup also based in Boston, for an interview. Today, a majority of Stavvy’s team

are ex-Toasters, including Zajaczkowski.

“I think one of the benefits of recruiting from an organization that is sort of an iconic Boston company, is that you know what the hiring practices are,” Ligris said. “There’s been a level of vetting that has occurred.”

Stavvy’s onboarding of former Toast employees suggests that the

layoffs which rocked startups

in March could be an opportunity for smaller startups to scoop up star talent that already has chemistry. While acqui-hiring is not a new concept, it has new weight in an environment reeling from mass layoffs and a shift to remote-first work.

Stavvy co-founders

Kosta Ligris

and Josh Feinblum

, though, say hiring a pod of employees can backfire without proper diligence.