Customer service solutions provider Zendesk plans to lay off around 5% of its workforce by the end of Q1 2023.
Meta, Netflix, Twitter, and Salesforce are among some of the big tech names which have already started executing layoffs, hiring freezes, and slowdowns and plan to continue doing so over the coming week. Company owners and investors are preparing for an economic downturn and the situation is only getting worse.
The layoff plan has been approved by the company's board of directors on November 3, 2022. This decision was “based on cost-reduction initiatives intended to reduce operating expenses and sharpen Zendesk’s focus on key growth priorities.”
"Zendesk is informing us that approximately 84 employees in the state of California will be laid off on January 6, 2023. Also, about 28 employees in San Francisco are affected, " tweeted the San Francisco Board of Supervisors member Matt Dorsey.
“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,” the company wrote in a statement.
Moreover, Zendeks has had a difficult year already, with discrimination lawsuits accusing it of gender bias, and favoring men in many of the company's activities. Apart from that, the company also turned down an acquisition offer of $17 billion and has later been acquired for $10 billion.
