[apapli]

That's a worrying sign - sales are generally the last people to go - if you're under financial stress you generally need revenue and customers.

Unless they somehow believe they can pull off another Atlassian (who actually spend a ton of money on marketing, despite being seen as a "no salesperson" business) I'd say the $65m funding they received is going down the gurgler.

[openforce]

'sales are generally the last people to go' - generally where? In startups , especially engineering driven ones, shredding parts of sales team first is not un-heard of. Also, according to the CEO, they over-hired. Looks like they tried to expand more than they could handle. Doesn't seem like a worrying sign to me.

[jusben1369]

Generally if it's an engineering focused set of founders they're most likely to get sales wrong. And sales driven leadership tends to get engineering hiring wrong. To way over simplify, both sides think "Well if we 2x headcount we'll 2x revenue/new features" They don't make that mistake on the discipline they came up with.

[calbear81]

That's not necessarily true, you could have also overhired on sales or realized that you need to increase sales quotas to hit your profitability targets which would result in letting go of underperforming folks.