Checkr, a 10-year-old startup that offers employee background checks and was last valued at $5 billion in April 2022, has laid off 382 employees as companies are not significantly hiring talent.

TechCrunch exclusively learned that Checkr conducted the layoffs across all departments and different levels on Tuesday. The San Francisco–based startup confirmed the layoffs in an email.

“In response to economic conditions that have impacted companies’ hiring, we made the difficult and painful decision to reduce the size of our team. This will allow us to operate more efficiently and ensure the long-term health of our business,” a Checkr spokesperson said in the statement.

The job cuts — which affected 32% of the company’s workforce — came nearly two years after Checkr announced the acquisition of Inflection, the startup behind GoodHire, a background-checking platform for small- and midsized businesses. At the time, The Wall Street Journal reported the deal was worth $400 million.

Backed by storied investors, including Durable Capital Partners, Fidelity Management & Research, Franklin Templeton, BOND and Coatue Management, Checkr lets companies do background checks by looking into driving and criminal records and basic identity confirmation of their potential employees. The startup offers an online form to let companies run those checks or use its API, which can be integrated within their hiring systems or onboarding software, including Workable and Zenefits.

Founded in 2014, Checkr counts Uber, Instacart, Netflix, Adecco, Airbnb and Coinbase among its key customers. Its customer base grew to more than tens of thousands of companies ranging from small and medium businesses to Fortune 500 employers in 2022. Initially, the startup was limited to Silicon Valley, but it expanded its presence beyond the Valley in 2016.

Checkr has given the affected employees a minimum of 10 weeks of severance and health insurance, as well as career and mental health support, the spokesperson said.

The startup did not answer questions about its runway and fundraising plans. To date, it has raised $679 million, with the last round of $250 million announced in September 2021.