The tech company appears to be the first in Utah to lay off workers in 2023 after a series of layoffs on Silicon Slope at the end of 2022.
Utah-based Qualtrics plans to furlough nearly 5% of its global workforce as it restructures and reorganizes to meet its 2023 goals, the company’s CEO said. According to a letter sent to employees on Wednesday,
The company, which makes customer experience software, plans to cut about 270 jobs in the United States and abroad, according to a letter released through filings with the Securities and Exchange Commission.
“Being able to adapt to dynamic markets and changing customer needs will be more important this year than ever before,” writes CEO Zig Serafin. “How you focus on this is critical to achieving your goals.”
Dismissed US workers receive at least 10 weeks Salaries, health insurance and other benefits. Eligible employees receive bonus payments and stock vests. Workers outside the United States will receive “similar levels of support consistent with local employment laws,” Serafin wrote.
The move will see the company pay $5.8 million. Severance and other payments as a result of layoffs, according to SEC filings.
It’s unclear how the layoffs will affect Utah, and no details were available on how Qualtrics’ goals might change in 2023. A company spokesperson declined to release any information beyond the SEC filing.
Seraphine’s letter indicated the company would create new jobs, reorganize others, and eliminate “roles not assigned to priority areas.”
“We are deeply grateful to each and every one of you who have contributed to building Qualtrics,” Serafin said in the letter. “This is a very challenging time, but it is a necessary step to support the way we are building the company going forward and deliver results against our goals.”
The layoff announcements followed a string of other Utah-based companies by the end of last year, after the first few years of the COVID-19 pandemic, as investment dried up with rising interest rates and a shift in consumers’ reliance on technology. It took place after the tech company laid off staff. .
In 2022, at least 15 Utah businesses (11 in the last three months of the year) laid off employees. Qualtrics is the first Utah company to join the list this year.
At a press conference on Dec. 15, Gov. Spencer Cox predicted that more businesses in Utah will cut jobs in the new year.
“There’s so much money going into it, technology valuations have been astronomical for a company whose product hasn’t turned a profit yet, right?” he said. What happened when interest rates rose is as soon as capital becomes more expensive. “
[Read more: ‘2023 is going to be rough’: What layoffs mean for Utah’s tech industry]
Clint Betts, CEO and co-founder of the nonprofit Silicon Slopes, predicted in December that “2023 is going to be a tough year” as Utah tech companies adjust to slowing growth. expected to host local job fairs and networking events. Off-working with employers in other sectors can help.
Tech companies aren’t the only ones struggling. Goldman Sachs, one of the world’s largest investment banks, also began layoffs this week.
It marks one of the banks. According to The New York Times, it is the largest layoff since the 2008 financial crisis.