This is the email that I sent to our team after first announcing the news in meetings with our regional teams across the globe.

Dear Karbonites,

Since our beginnings 8 years ago, I am humbled by what Karbon has grown into. The impact we continue to have on the accounting industry and the platform we have built is making the lives of our customers and their clients better every day. I am deeply grateful to this team who have turned our vision into a reality and built the incomparable culture that is our defining advantage.

Today’s announcement is an incredibly difficult one. Despite efforts to reduce costs elsewhere, we have made the decision to reduce the size of our team by 23 percent to provide the extended runway necessary to reach profitability.

The economic conditions this year have forced many SaaS companies to pivot from high-growth strategies to conservative ones to ensure their runway outlasts the market uncertainty. The unfortunate truth is we started accelerating growth in a very different economic circumstance and did not pivot in time. We increased headcount too quickly, and we should have paused hiring sooner. I own this and am very sorry for letting you down.

For all those whose roles have been impacted, we will walk each of you through your enhanced severance and notice periods, outplacement support, employee-assistance program and the option to join a list to be shared with companies who are hiring. We will do everything we can to assist each of you in this transition.

For those whose roles are not impacted, we know this will be a difficult time for you as well. Please take the time you need over the coming days to support your co-workers and take care of yourselves. Reach out to your leader, me, or our employee-assistance program for any support you may need, and I encourage you to take either tomorrow or Friday as a mental-health day.

We realize that this is a lot to comprehend and want to give you the opportunity to ask questions. On Thursday, in your time zone, we will host a call to provide answers as best we can.

Our top priority today is to do everything we can to support those whose roles are impacted. Their departure is not a reflection of their talent or commitment to Karbon. These are experienced, skilled, and gifted members of our team, who will be deeply missed.

We remain committed to all of you and our customers to effectively execute on our mission we started 8 years ago. During our next company-wide meeting, we will take you through our vision and plan that delivers a sustainable growth path for the company, our product and team.

Stuart