Software firm MapR will close, firing 122

Santa Clara software company MapR Technologies is shutting down and firing 122 employees following financial troubles.

Even CEO John Schroeder’s job is being eliminated, along with other senior executives and dozens of engineers, according to a letter sent by the company to California’s Employment Development Department and Santa Clara city officials.

The WARN Act notice comes after the company was unsuccessful in securing funding to continue operations. MapR Technologies, founded in 2009, had raised $280 million from investors, with the latest infusion coming in 2017, according to Crunchbase, a database of startup information.

In the letter, Schroeder wrote that the company did not give the notice required by the state for mass layoffs at businesses of its size because it was trying to secure financing. MapR had “a realistic opportunity to obtain the financing sought,” Schroeder wrote.

“The company reasonably and in good faith believed that sending the 60-day notice at the time

the 60-day notice would have otherwise been required precluded the company from obtaining the financing it was actively seeking,” Schroeder wrote.

Layoffs will be completed by June 14, Schroeder wrote, but the company would likely fire nonessential employees sooner.

MapR is still trying to keep its doors open, the company said, having cut some sales positions and is now seeking a buyer.

“MapR is actively pursuing a strategic transaction that might allow it to complete this transition and avoid closing its Santa Clara site,” the company said. “In fact, MapR received more than one letter of intent from interested parties, and today is engaging in the due diligence process in a transaction which, if consummated, may eliminate the need to close the Santa Clara site.”

The company said it filed the WARN notice as a precaution because of the uncertainty of the situation.

“MapR concluded that the most prudent course of action was to provide Santa Clara employees with the notice required under applicable law (WARN) while it continues to pursue a transaction that, if successful, may permit it to keep the Santa Clara site open and retain many of the employees that might have otherwise been affected.”

MapR’s customers included Cisco, Cision, HP and TransUnion, according to its website. The company competes with cloud software companies like Palo Alto’s Cloudera, and had a valuation of more than $1 billion after a round of funding in 2016, according to TechCrunch.

“MapR is actively pursuing a strategic transaction that might allow it to ... avoid closing its Santa Clara site.” MapR company statement