Shyp courier
Shyp

Shyp, the four-year-old VC-backed startup that wants to reinvent shipping, is significantly scaling back its operations and laying off employees to “focus on achieving profitability.”

Shyp will offer its service only in San Francisco, and will no longer operate in New York City, Chicago, and Los Angeles, the company said in an email to customers on Thursday. In a blog post announcing the changes, CEO Kevin Gibbon noted that “the market for venture financing has changed and there is now a higher bar for profitability.”

With $62 million in funding from firms like Kleiner Perkins and Sherpa Ventures, Shyp operates…