Vancouver-based social media management company Hootsuite has laid off five percent of its staff this week in light of “current economic and market realities.”
Hootsuite confirmed the cuts in a statement provided to BetaKit, citing a need to ensure “the size and costs of our organization fit the size of our business today.” The company did not say which teams or roles were impacted.
These layoffs come only a few months after Hootsuite laid off 30 percent of its global workforce, amounting to 400 employees. At the time, CEO Tom Keiser said the move stemmed from a need to “refocus” the company on efficiency, growth and financial sustainability. Following Hootsuite’s August layoffs, the company had a headcount of just over 1,000 —indicating that the company’s latest round of cuts impact about 50 employees.
Hootsuite attributes latest layoffs to “current economic and market realities.”
“As we clarify our customer focus and priorities, and reflect on our organization, it is clear that we have some areas of duplication, reduced or slowed demand, and layers of management that we are addressing which will unfortunately result in approximately 5% of our employees leaving the business,” read the statement from Hootsuite.
Hootsuite is far from the only Canadian tech company to feel the impact of worsening economic conditions in recent months. The broader downturn, fuelled by geopolitical tensions and rising interest rates in the face of mounting inflation, has led many other high-growth tech firms across Canada and around the world to make similar staff reductions in 2022.
According to layoff tracking website Layoffs.fyi, 728 startups globally have cut a combined 95,732 employees so far this year.
Hootsuite reported having a headcount of more than 1,400 in June, prior to the first round of layoffs. Keiser told The Globe and Mail at the time that the firm was working to avoid layoffs, but already expected to end 2022 with fewer new hires than it had originally planned. But since then, the company has cut around 450 employees.
Under Keiser’s leadership, Hootsuite has focused on pushing the social media management firm into e-commerce and customer service software, acquiring automated messaging platform Sparkcentral and chatbot startup Heyday, and Hootsuite has made a number of changes to its executive team and board.
BetaKit reported that Hootsuite was planning on going public on the Toronto Stock Exchange last year. However, as investor appetite for new Canadian tech issues waned, sources told BetaKit that the company put those plans on hold.
Since then, Hootsuite, like many other players in the Canadian tech space, has felt the crunch of shifting economic conditions. In addition to laying off staff in recent months, The Globe and Mail reported in September, that Hootsuite has also seen at least one of its investors mark down the valuation of its holdings in the company.
Feature image courtesy Hootsuite.