One of Canada’s tech companies- Hootsuite said that it’s going to lay off 30% of its staff because of global restructuring. Recently, many technology companies have announced major layoffs. Hootsuite which is a Vancouver-based social media business is the latest one to do so.
The company has not announced the exact number of staff that will be laid off. Also, it has not answered why the layoffs. According to the financial data firm Refinitiv, the company employs around 1000 people.
Today is a hard day at Hootsuite…This sadly means we are saying goodbye to some of our people. These people are our colleagues and our friends. They are some of the bests in their fields, and we will do whatever we can to help them land well elsewhere.Hootsuite CEO Tom Keiser.
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Tom Keiser believes that currently, Hootsuite needs to refocus, so it can drive efficiency, growth, and financial sustainability. However, he didn’t mention anything about the restructuring. He said that “Today our focus is on our people, both those who are leaving us and those who are staying, and ensuring our customers continue to receive the support they need.”
In the past, Hootsuite was seen as a darling in the Canadian technology market. It was founded in 2008 by Ryan Holmes. It created a social media wave that allowed people to manage their accounts. Also, in 2010’s flood of venture capital, Hootsuite raised around $250 million by 2014. Companies like Fidelity Investments, Accel, and Insight Venture Partners invested in Hootsuite.
Until this year, Hootsuite was one of Canada’s largest privately held technology companies. It had around 1,400 employees in late June.
Why so many layoffs?
A lot of tech companies have been laying off people recently. Earlier this summer, WealthSimple laid off 13 percent of its staff. Also, Ottawa-based Shopify laid off 10 percent a few weeks later.
When the COVID-19 pandemic hit, billions of people turned to digital services to deal with isolation. This made the tech companies grow larger. So, most tech companies went on a hiring spree.
However, now that things are going back to normal, these companies are not seeing demand as projected. Thus, they are having to reduce costs at a faster rate. Moreover, the high inflation and interest rates are making the situation worse for these companies
Hootsuite’s CEO said that the company would try to help the laid-off employees find work someplace else. He said that their focus is on their people. Also, he mentioned that the company would make sure that the customers are not affected.