Sequoia Capital: From layoffs to investment cuts, know all about the venture capital firm's restructuring plan

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Also Read: Sequoia Capital witnesses departures of long-time partner Michael Moritz, other key partners Other than layoffs, the company is changing fund allocation and opting for other measures to survive the current period of economic uncertainty. The venture capital firm is working on its extensive two-year "restructuring" initiative within the company. Also Read: Sequoia splits into 3 entities: India, China and US entities to operate independently from March 2024 With this restructuring, the company is planning for its transition from being the provider of one-on-one support to a model that caters to a large number of founders simultaneously.

The company is aiming to divide its operations into three distinct branches with its U.S. and European divisions continuing under the existing Sequoia brand. Also read: Sequoia Capital to sell 10.18% stake in Go Fashion via block deal: Report 1.

The company cut down its two major funds as part of its downsizing in the middle of a broad startup downturn. The company reduced its cryptocurrency fund to $200 million from $585 million, reported Wall Street Journal on Thursday, citing people familiar with the matter. The American firm has also cut down its ecosystem fund, which mainly pumps money in other venture funds.

The amount was slashed to $450 million from $900 million. Also read: Sequoia’s split sends warning to US companies doing business in China 2. The company is also parting ways with its key partners.

Those partners include onetime firm leader Mike Moritz, and Michelle Fradin, who had championed Sequoia’s doomed backing of crypto exchange FTX. The company had also announced that it would spin off its India and China divisions. 3.