KEY POINTS
- A ‘deep review of every function’ at the company resulted in Wednesday’s layoffs
- Several hundreds of other positions will either change or will be moved to other locations
- Qualtrics recently announced AI-powered solutions for its clients
Experience management software company Qualtrics is cutting hundreds of jobs in a restructuring move that should resolve the “complexity” in the organizational model.
“We’ve made the difficult decision to eliminate approximately 780 roles across the company,” stated a publicly shared message sent to employees by CEO Zig Serafin on Wednesday.
“Rapid hiring was essential to enable our growth up to this point, but it also created complexity that does not support continued growth at our scale,” Serafin said. The company implemented a “deep review of every function” which resulted in a restructuring that Serafin said should enable teams to work better together.
Departing employees will be eligible for a minimum of 10 weeks of severance pay, depending on one’s tenure and employment level. Health insurance, performance bonuses for the fourth quarter, and unpaid wellness and experience bonuses will be provided as well. Career support will also be offered to affected employees, he said.
Workers outside the U.S. will receive “a similar level of support,” depending on their countries’ local employment regulations.
All teams across the company will be affected, but it is unclear which units will be hit hard. Qualtrics reportedly had 5,500 employees before Wednesday’s layoffs.
Aside from Wednesday’s layoffs, the restructuring will ensue in the coming months as Serafin said “several hundred roles are changing or moving locations over the next year.”
The layoffs came a few months after Qualtrics was acquired by tech investment firm Silver Lake. “We believe deeply in the incredible opportunity ahead for Qualtrics as they continue to pave the way as the leader in experience management,” Silver Lake co-CEO Egon Durban said at the time.
The software company, which provides companies with products that help collect and analyze data through surveys and other technological means, has 28 offices around the world and services around 90% of the Fortune 100 companies.
Just last month, Qualtrics announced that it was tapped by Southwest Airlines to “keep a pulse on employee sentiment” as the U.S. airline moves to get a better understanding of its employees’ wellbeing, so it can provide the necessary support.
Qualtrics has also integrated artificial intelligence into its products. It recently announced new AI-powered solutions to help companies conduct “smarter, faster research” and in turn respond faster to customers.
The Seattle-based company joins a host of other software companies conducting layoffs in recent months, including Talkdesk, which was once valued at $10 billion.
Lucid Software downsized its team by about 7% late last month, citing the need to rebalance strategies and determine whether its investments will allow the company to thrive. Low-code software unicorn Airtable eliminated 237 roles in mid-September, and Indian software as a service (SaaS) startup Chargebee cut 10% of its workforce.
