![]() Out of the total estimated cost, the company expects to incur $8 million in the fourth quarter of 2022.Īs part of the layoffs, Zendesk said it will provide outgoing employees three months of base salary along with one week’s pay for each year of full service. The layoffs are estimated to set Zendesk back by about $28 million, primarily due to costs incurred on severance payments and employee benefits, the SEC filing showed. The roles impacted by the layoffs were decided on five strategic priorities, the company said, including “optimizing our processes and systems, reducing duplication of effort, increasing our spans of control and rebalancing our roles towards Go to Market to build on our enterprise opportunity while continuing to build and deliver compelling products for our customers.” Layoffs to cost Zendesk $28 million The statement outlined how Zendesk’s top management tried different measures, such as closing over 100 positions, to try and address its bottom line but was unable to get past the issue. As an executive team we take responsibility for that,” the company said. “…we grew our team much faster than we should have based on revenue growth expectations that were not pragmatic. In a separate press statement, Zendesk’s executive team took responsibility of the job cuts and said the company is pulling back from the ways it had previously invested in “hiring growth”, much in advance of the business growth. “This decision (layoffs) was based on cost-reduction initiatives intended to reduce operating expenses and sharpen Zendesk’s focus on key growth priorities,” the company wrote in the SEC filing. The decision comes just months after the company was acquired by a consortium of private equity firms for $10.2 billion. □ You will work alongside a team of winners that will inspire you daily.CRM software provider Zendesk has decided to lay off 300 employees from its global workforce of 5,450 employees to reduce operating expenses, a recent filing with the US Securities and Exchange Commission (SEC) showed. □ We’re one of the fastest-growing startups in the eCommerce ecosystem.
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