Key Takeaways:
- According to Hootsuite Inc., a 30% reduction in employment is planned as part of a global restructure.
- As investor interest in tech equities has dwindled, several internet companies have taken similar steps, including Hootsuite’s layoffs.
- Keiser, the CEO of Hootsuite, has held the position since Ryan Holmes, the company’s founder, stepped down in 2012.
Hootsuite Inc. reports that 30% of its workforce will be let go as part of a global restructuring.
The Vancouver-based social media startup declined to comment on the number of employees who were let go or the reasons behind the layoffs. However, financial data provider Refinitiv’s most recent statistics indicate the company employs roughly 1,000 individuals.
“Hootsuite has a challenging day today…
This regrettably means that we must say farewell to some of our employees,” said Tom Keiser, CEO of Hootsuite, in a statement.
These people are our friends and coworkers. We might do everything we can to help them land well elsewhere because they are some of the best in their fields.
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He continued that the company, which was once a darling in Canada’s IT industry, will be helped by the decision to realign itself with successful techniques. He emphasized Hootsuite’s need to refocus to promote efficiency, growth, and financial sustainability.
He said, “Today, our focus is on our staff, both those who are leaving us as well as those staying and ensuring our clients continue to receive the care they need,” when asked for more information about the restructure.
Hootsuite’s layoffs follow similar actions other internet businesses took in recent weeks as investor interest in tech stocks has waned.
One of the most notable was Shopify Inc., which reduced its employment by 10% last month after Wealthsimple had already done so by 13%.
The “Dragon’s Den” star Michele Romanow’s Clearco, an online investing platform, is also involved. At the end of July, Clearco reduced the number of employees it had by 25%.
According to data from Layoffs.fyi, 493 firms globally have fired 67,562 workers so far this year.
Since 2012, when he accepted the place of business founder Ryan Holmes, Hootsuite’s Keiser has served as the company’s CEO.
During Keiser’s leadership, Hootsuite purchased Heyday, a maker of artificial intelligence chatbots, in 2021 for $60 million.
It claimed at the time that it intended to acquire the Montreal-based business because the e-commerce industry was quickly migrating to social and messaging platforms. The acquisition would provide Hootsuite with additional chances to improve brands’ customer experiences.
Source: Global News
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