RapidAPI Initiates Major Restructuring Effort, Slashes Workforce by 50%

RapidAPI, a billion-dollar API marketplace startup, embarks on a significant restructuring process that involves laying off 50% of its staff, according to an email from newly appointed CEO Marc Friend obtained by TechCrunch. The downsizing aims to streamline the company to promote agility and a sharper focus on product development and customer satisfaction.

In his email to employees, Friend acknowledged the challenges that arose due to the company operating on multiple fronts as a product organization. The move aims to right-size RapidAPI and foster an environment that prioritizes product focus and customer success. Friend took over the CEO position last week, while founder and former CEO Iddo Gino transitioned to a tech advisor role.

Approximately 115 employees across various offices in Europe, Tel Aviv, and San Francisco will be impacted by the layoffs. A wide range of departments, including sales, talent acquisition, engineering, product, and marketing, will see workforce reductions. RapidAPI confirmed its intention to reduce its team size by 50% and halt all open positions but did not reveal the exact number of affected individuals.

In an emailed statement, a spokesperson explained that the decision to restructure and let go of valued employees was not taken lightly. The new CEO and the Board followed suit with other tech companies that have recently undergone similar reorganizational developments.

RapidAPI developed a platform to assist businesses in discovering and integrating third-party APIs and managing their own internal API usage. In March 2022, the company raised $150 million in a Series D funding round led by SoftBank’s Vision Fund 2, with participation from Qumra, Andreessen Horowitz, M12 (Microsoft’s Venture Fund), Viola Growth, Green Bay, and Grove Ventures.

In November 2021, RapidAPI rebranded itself as Rapid and reported that over 4 million developers utilized its public API hub. The hub became one of the world's largest, offering developers the capability to integrate over 40,000 APIs from companies like Twilio, Microsoft, and Google. RapidAPI also announced new enterprise customers such as ATA, Poly, Scuderia AlphaTauri of Formula 1, and Sun Life Financial. The company also doubled its workforce to 200 employees within a year.

As the industry expands, innovative no-code platforms, like AppMaster, complement API platforms by offering simplified app development solutions for frontend, backend, and mobile applications. Users can leverage AppMaster's visual designers to build their applications, increasing productivity and reducing development costs.

Last year, RapidAPI also opened a new European headquarters in Berlin, further extending its global presence.