Hootsuite is laying off 30 percent of its worldwide staff, citing a global downturn in the tech industry that is hitting both giants and entrepreneurs.
The Vancouver-based social media management business informed its staff on Tuesday.
CEO Tom Keiser said in a statement to BIV “Today is a hard day for Hootsuite,”.
He said: “These people are our colleagues and our friends.
“They are some of the best in their fields and we will do whatever we can to help them land well elsewhere.
“We want to be very clear this decision is not a reflection on them or their work. It is indicative of a change to our business that realigns our strategies with the positions we need to be successful.”
Hootsuite said it will not be making any additional remarks at this time.
The firm employs around 500 people in British Columbia and more than 1,200 people worldwide, which means that more than 350 people will be laid off.
It’s unclear how many staff in Vancouver have been laid off.
Hootsuite, according to Keiser, must now “refocus our initiatives to deliver efficiency, growth, and financial sustainability.”
The layoffs came only one week after Vancouver-based digital firm Unbounce Marketing Solutions Inc fired off over 50 employees — 20 percent of its employment — and e-commerce startup Article, best known for selling furniture, laid off more than 200 employees — 17 percent of its workforce.
Ilya Brotzky, CEO of the VanHack Technologies recruitment firm said: “More and more companies will cut staff in the months ahead. I anticipate the correction to last until the new year.”
He added the rate at which newly laid-off employees get employed by another organization would be determined by their job.
Brotzky told BIV: “Many companies are still hiring tech talent, for example, but other roles like talent acquisition or customer service might be a bit slower to find new opportunities.”
The layoffs at Hootsuite occur nearly precisely two years after California-based Keiser took over as CEO from co-founder Ryan Holmes, who became executive chairman.
Holmes finally resigned as executive chairman last November. Hootsuite expanded its C-suite last year when the company hired Boston-based Tiziana Figliolia as CFO, filling a 19-month absence.
Source: Richmond News