Zendesk lays off 320 employees; 8% of workforce

Software-as-a-service (SaaS) platform Zendesk has announced to lay off 8 per cent of its workforce, about 320 employees, as macroeconomic conditions have not improved and "we find ourselves in an increasingly competitive marketplace".

According to Zendesk CEO Tom Eggemeier, from 2020-2022, the hiring outpaced business realities.

"At the same time, our customers are navigating massive shifts in how they do business, including increased pressure to deliver profitable growth and leveraging fast-advancing technology like generative AI," he told employees in an email.

To best serve customers, "we have to sharpen our focus and wherever possible, direct our talent and resources to our highest priorities including maturing how we go to market and building new products and capabilities that deliver tremendous value," he added.

Each impacted employee will be eligible for three months of base salary/on-target earnings plus one week for each full year of service, job search resources, a prorated portion of annual bonus payable at target, 60 days of vesting cash and health insurance benefit coverage.

"In some countries, this process, including notifications about potential role impact, will take longer due to local requirements and practices," informed the CEO.

"For those not impacted, we know this is a difficult time for you too, as we all say goodbye to teammates. In the coming days, your E-staff and team leaders will hold meetings to talk more about what this means for your organisation and team," Eggemeier added.

In June last year, Zendesk was acquired by a group led by global investment firms Permira and Hellman & Friedman in a $10.2 billion all-cash deal.

Zendesk started the customer experience revolution in 2007 by enabling any business around the world to take their customer service online.

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