Software maker New Relic will cut 110 employees around the world as part of a restructure to “focus its resources on top priorities.”
There will be 90 layoffs in the US and another 20 around the world, which is a five percent drop in headcount.
The firm is providing three months of full salary and target/bonus incentives, extended coverage with six months of COBRA premiums reimbursed, personalized career outplacement, and concerned workers can keep their laptops.
CEO Bill Staples said: “It is a painful outcome that impacts the lives of people we care about, but I believe this is the responsible action to take.”
“Our People team and managers will be working around the clock to ensure everyone is supported and cared for through this difficult transition.”
The tech firm informed authorities it will cost around $8.3 million to $9.3 million for staff terminations and other restructuring costs.
The majority of these costs are projected to be paid in the current second quarter of the 2023 fiscal year.
New Relic is headquartered in San Francisco, but it employs hundreds of people in its engineering headquarters in Portland.
A company spokesperson said: “To continue our strong start in fiscal year 2023, we are making organizational changes to be good stewards of our company’s resources, ensuring we are spending wisely and in line with current information on growth trends and market expectations.”
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“We will continue to invest toward our top priorities, especially in areas where we’re seeing success.”
The board approved the plan on Wednesday, August 17.
The company had its annual shareholder meeting that day.
This is the second year that the whole organization has taken a week off.
This is also the company’s second reorganization year. Last year, it dropped 160 spots worldwide.
New Relic creates technologies that let clients monitor their own software applications.
Since going public in 2014, the firm has faced hurdles as growth has slowed and competition has intensified.
Source: The Business Journals