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Pegasystems announces it will cut four percent of its global workforce

By Nithya Bose in US business news, posted January 4, 2023

Software maker Pegasystems has confirmed layoffs of around four percent of its global workforce.

Last year, the software maker employed 6,133 workers in the Americas, Europe, India, and elsewhere in the Asia-Pacific region.

CEO Alan Trefler said the firm is making changes in its go-to-market teams to ensure alignment with strategy.

He added it is on its way to becoming a "Rule of 40" company.

The term is a popular success indicator for software companies where the growth rate should be at least 40 percent when added to its free cash flow rate.

Mr. Trefler said: "We are working quickly to finalize these changes and team leaders will communicate them as soon as we can.

"We will continue to prioritize internal candidates for open positions, and for anyone leaving Pega, we will support their transition in keeping with our values."

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Pegasystems estimates an $18.9 million charge for cash severance and related benefit costs for laid-off workers in the fourth quarter of 2022.

The affected employees will be notified sometime during the first quarter.

Last year, Bay State tech firms slashed thousands of workers due to market uncertainties and other factors.

Local cutbacks hit both publicly listed companies and unicorn startups.

Source: The Business Journals

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