San Francisco-based Zendesk is slashing five percent of employees.

It is the latest Bay Area tech company to make staff reductions.

The customer support software maker makes the move in order to reduce costs and streamline operations.

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The news comes just days after a sweeping layoff at Twitter which hit half its 7,500 headcounts.

Zendesk, like Twitter, is based in Mid-Market and took advantage of a controversial payroll tax break in 2011 to establish offices there.

The redundancies affect around 300 of its 5,450 staff.

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The company said: “The changes we are making will enable a healthier and more efficient Zendesk.

“We will continue to grow and to focus on growth, albeit at a pace that appropriately balances our need to improve our profitability.”

Supervisor Matt Dorsey stated last week that Zendesk was terminating around 28 employees in San Francisco as part of 84 layoffs across California.

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Those who are dismissed will receive at least three months’ base pay.

Hellman & Friedman, Permira, and other investors agreed to acquire Zendesk for $10.2 billion and take it private in June.

The purchase, which is likely to close by the year-end, comes after Zendesk refused a $17 billion takeover deal in February, claiming that it undervalued the firm.

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As the economy has stalled and the Federal Reserve has hiked interest rates multiple times, many tech firms have downsized their workforces.

The most recent cuts are from Lyft, Stripe, Chime, and Opendoor.

Facebook parent Meta is reportedly going to announce significant layoffs this week.

Source: San Francisco Chronicle

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