Informatica, a cloud-based AI data company, announced layoffs for 10 percent of its employees while boasting about how well the company was doing.
“Our team delivered another quarter exceeding guidance for the top and bottom line as we help customers increase productivity, drive efficiency, and become AI-led, data-driven companies,” CEO Amit Walia said in the press release. The paper then listed milestones reached by Informatica in Q3 like a revenue increase of 10 percent year-over-year for a total of $408.6 million and a 7 percent year-over-year increase of annual recurring revenue for a total of $1.58 billion. It also bragged about the recognition it was receiving from data analytics firm J.D. Power and others due to its “outstanding customer service experience” and its “master data management.”
Then, Walia sheepishly mentioned the company’s “restructuring plan” which involves “reduc[ing] its workforce by approximately 545 employees,” which amounts to 10 percent of its global workforce. This will be effective by Dec. 31.
The stated purpose of the layoff is to “further streamline the company’s cost structure as a direct result of its cloud-only, consumption-driven strategy” promoting “continued AI-powered production innovation and strong […] growth with a lower expense base and higher operating margins.”
In January 2023, Informatica laid off 450 employees and named a new Chief Financial Officer.
Accounting giant Grant Thornton LLP is laying off 200 employees citing ‘headwinds’
— MacroEdge (@MacroEdgeRes) November 6, 2023
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Meanwhile, the prominent accounting firm Grant Thornton LLP is laying off 200 people in the second layoff round in the past six months. This is being interpreted by many as an indicator of economic downturn. In May 2023, the company fired 300 employees across its U.S. branch. According to Fox Business, this will mainly affect advisory positions.
This current round of layoffs will affect over 6 percent of its workforce, as the company has about 8,000 employees in the U.S.
A spokesperson for the firm said, “The staffing changes reflect pockets of underutilization in limited business segments, and specialty areas that the firm is exiting due to market trends. We continue to invest in higher-growth areas of the business to even better serve our clients. ” The news came as a surprise, as Grant Thornton just announced a record revenue of $2.4 billion for the fiscal year (ended July 31).
Other big firms that have cut significant numbers of employees this year include Ernst & Young and BDO USA.
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