Enterprise data management firm Informatica plans to lay off seven per cent of its total workforce through the first quarter of 2023, the company said in a filing with the US Securities and Exchange Commission.
The company said it expected the cuts to better align its workforce to its cloud-focused strategic priorities and cut costs to suit current business needs. The move affects approximately 450 employees out of over 5,500 employees globally, Informatica said in the filing.
Informatica’s move to reduce its workforce will see the company incur non-recurring charges of approximately $25 million to $35 million in the form of cash expenditures for employee transition, notice period, severance payments and employee benefits, the company filing showed.
The company said it expects the layoffs to be completed by the first quarter of 2023 but added that there might be limited exceptions. It said the cash expenditures incurred due to the realignment plan will not reflect it its earnings for the quarter ended December that will be declared in February.
Informatica’s decision to lay off employees comes just after large tech companies such as Amazon and Salesforce announced massive layoffs in the beginning of the year.
2023 kicks off with massive layoffs
In the first 11 days of 2023, 37 technology companies have laid off almost 18,392 employees, data collated by layoffs.fyi showed. Last year, the portal data shows that 1,021 companies had let go of 154,036 employees.
Layoffs in technology companies became a regular phenomenon towards the end of 2022 as companies feared economic slowdown due to variety of factors such as the pandemic, geopolitical tensions and natural disasters.
In addition to reducing its workforce, Informatica’s filing showed that Michael McLaughlin would be replacing Eric Brown as the company’s chief financial officer. Prior to joining Informatica, McLaughlin served as the CFO of the Fair Issac Corporation.