Discover April's Layoff Announcements From The Technology Sector
May 2, 2023
Ride-hailing app Lyft recently announced in an SEC filing that it will lay off 1,072 employees, which accounts for approximately 26% of its corporate workforce. Additionally, the company stated that it will not be hiring for an additional 250 positions. This decision follows a memo from newly appointed CEO David Risher, who highlighted the need to streamline operations and better cater to the needs of riders and drivers. The layoff comes as Lyft aims to optimize efficiency amidst a challenging economic climate that has affected the tech industry. The company's stock performance has also been underwhelming, remaining below its debut price and experiencing an 8% decline this year. In November 2022, Lyft had already implemented a 13% reduction in headcount. The co-founders, Logan Green and John Zimmer, continue to serve on the company's board after leading Lyft through its successful public offering in 2019.
EMCORE Corporation, the world's leading provider of inertial navigation solutions to the aerospace and defense industry, has recently announced a restructuring program aimed at optimizing their operations. As part of this initiative, the company will be shutting down its Broadband business segment, which includes cable TV, wireless, sensing, and chips, as well as discontinuing its defense optoelectronics product lines. These strategic decisions come after extensive discussions with potential buyers to divest non-strategic product lines. The company plans to focus entirely on scaling its inertial navigation business, which aligns with their long-term goals. To achieve cost reductions, approximately 100 employees will be laid off primarily in Alhambra and China. In addition, facility space will be downsized from five to two buildings at the Alhambra campus, and the manufacturing support and engineering center in China will be closed. These actions are expected to reduce annual costs and expenses by approximately $12 million. The restructuring is projected to be substantially completed by September 30, 2023, with a restructuring charge anticipated to be recorded in the fiscal third quarter ending June 30, 2023. The company expresses its sincere gratitude to the affected employees for their dedication and service, wishing them the best in their future endeavors.
Absolute Software™ recently announced a restructuring plan aimed at reducing operating expenses. As part of this plan, the company had to make the difficult decision to lay off approximately 40 employees, which accounts for about 5 percent of its total workforce. Additionally, office space reductions were also implemented. The restructuring is estimated to result in non-recurring charges ranging from $1.8 million to $2.8 million, covering severance payments, notice pay, employee benefits contributions, and related costs. These charges are expected to be incurred primarily in the fourth quarter of fiscal 2023, with the majority of the headcount reductions and cash payments completed by the end of the same quarter. However, the process may extend beyond the specified timeline in certain jurisdictions due to legal requirements. It's important to note that the actual expenses incurred may differ from the estimated figures mentioned above, as they are based on a set of assumptions, including legal obligations in various jurisdictions.
F5, Inc. recently announced its financial results for the second quarter of fiscal year 2023, reporting an 11% increase in revenue compared to the previous year. Despite the positive performance, the company has made the difficult decision to lay off approximately 620 employees, which accounts for about 9% of its total workforce. F5 aims to prioritize high-impact initiatives and reduce operating costs in response to the current demand environment. These measures are expected to result in annualized savings of around $130 million, although severance benefits and other charges in fiscal year 2023 are estimated to amount to approximately $45 million. Furthermore, the company plans to streamline its facilities, scrutinize discretionary projects, minimize travel, and significantly reduce its corporate bonus pool in 2023.
Dropbox CEO Drew Houston revealed that the company will be reducing its workforce by approximately 16%, resulting in the layoff of 500 employees. Houston explained that this decision was driven by a combination of factors, including the company's slower growth as its business matures and the economic challenges faced by its customers. Additionally, Dropbox aims to prioritize the development of artificial intelligence (AI)-powered products, necessitating a shift in skill sets within the workforce. While the company has sought to reassign employees to different teams wherever possible, its future growth demands a specific mix of talents, particularly in AI and early-stage product development. Impacted employees will receive support in the form of job placement services, career coaching, severance pay of up to 16 weeks, and an additional week per year of tenure at Dropbox. The layoffs are part of a broader company consolidation, including the merging of Core and Document Workflows businesses and internal team restructuring. Dropbox will be conducting internal town halls to address employee inquiries and aims to lead the AI era, building upon its past successes in mobile and cloud technology.
Alteryx Inc (AYX) shares experienced a decline of 5.51% on Friday morning following the release of mixed first-quarter 2023 results and underwhelming second-quarter guidance. Despite reporting a 26% year-over-year increase in Q1 2023 revenue, reaching $199.1 million, just slightly missing the consensus estimate of $200.1 million, the company's adjusted gross profit rose to $176.0 million from $139.5 million, with flat margins at 88%. Alteryx Inc also disclosed its plan to reduce its workforce by approximately 11%, resulting in an expected cost of $11 million to $13 million, primarily incurring during Q2 2023. This reduction is part of the company's effort to improve its financial position following recent financial performance. Looking ahead, Alteryx Inc expects Q2 2023 revenues in the range of $180 million to $184 million, while adjusted earnings per share are projected to be between $(0.69) and $(0.65). For the full year 2023, the company anticipates revenue of $980 million to $990 million and adjusted earnings per share of $0.65 to $0.75.
Join LevelFields now to be the first to know about events that affect stock prices and uncover unique investment opportunities. Choose from events, view price reactions, and set event alerts with our AI-powered platform. Don't miss out on daily opportunities from 6,300 companies monitored 24/7. Act on facts, not opinions,and let LevelFields help you become a better trader.
Join LevelFields now to be the first to know about events that affect stock prices and uncover unique investment opportunities. Choose from events, view price reactions, and set event alerts with our AI-powered platform. Don't miss out on daily opportunities from 6,300 companies monitored 24/7. Act on facts, not opinions, and let LevelFields help you become a better trader.