Motive (formerly KeepTruckin), a fleet management technology provider, laid off 6% of its workforce (237 employees) citing capital cost constraints and lowered demand for the product. Motive’s CEO noted that demand for its product today declined given the rising fuel prices and increasing cost of capital.

The company experienced higher demand for the product post-pandemic and has grown its team from 1,450 to 3,700 employees to meet the rising demand. Its annual recurring revenue (ARR) has improved 3x since 2020. However, the company’s CEO today noted that it has over-hired employees in certain areas.

Motive will be recruiting fewer people in 2023, and has eliminated management layers of some teams and certain specialized roles.

Analyst QuickTake: Surprisingly, the layoffs come seven months after KeepTruckin rebranded as Motive, signifying its expanded offerings beyond truck industry tech. In conjunction with the rebranding, the company also launched “Automated Operations Platform,” a suite of IoT hardware and AI-powered applications designed to connect and automate physical vehicle operations.