Cover lays off most employees
According to information obtained by Coverager, insurance startup Cover has laid off most of its employees.
Yesterday, the company terminated “all but a handful” of employees as funding and acquisition efforts were unsuccessful. Cover, which is spread across the U.S. and Canada, had 80-90 employees prior to these layoffs.
A little over two years ago, Cover cut 40% of its staff as it wasn’t able to secure an anticipated Series C round of funding. At that point the startup had raised $27 million. Cover was able to secure an additional investment but it wasn’t publicly disclosed.
These layoffs were a surprise according to one impacted employee as leadership did not communicate any signs of struggle. What’s more, Cover recently expanded into California with its Cover Auto product.
According to one employee we interacted with, the company is shutting down, while another said that Cover may still get acquired. Another former employee provided us with the following answer about a possible shut down: “If it is, you will find out when any official announcement is made or any record has been filed with any appropriate regulatory bodies.”
We reached out to Cover for a comment.