Hootsuite is set to lay off 30 percent of its global workforce, approximately 400 employees.
The company confirmed the layoffs to BetaKit, with a statement from CEO Tom Keiser noting that the Hootsuite “made the difficult decision to restructure the company and reduce our global workforce by 30%,” citing a need to “refocus” on efficiency, growth and financial sustainability.
“Today is a hard day at Hootsuite,” Keiser added. “…These people are our colleagues and our friends. They are some of the best in their fields, and we will do whatever we can to help them land well elsewhere.”
As reported by The Globe and Mail, Hootsuite broke the news to employees on Tuesday.
A spokesperson for Hootsuite told BetaKit that post-layoffs Hootsuite will have just over 1,000 employees remaining. The company refused to share details of the roles affected by the cut, and what the restructuring will look like.
Hootsuite reported having more than 1,400 employees in June after a hiring spree that saw its employee headcount jump from 1,200 in January. Keiser told The Globe at the time that Hootsuite was working to avoid layoffs, but already expected to end 2022 with fewer new hires than it had originally planned.
Vancouver-based Hootsuite joins the growing list of tech companies making similar moves as they feel pressure from the current economic environment.
Hootsuite has been on a growth spurt over the past year, having made two landmark acquisitions in 2021 that were part of the company’s expansion beyond social media management. Hootsuite also announced it was opening a new Atlanta office with plans to hire over 60 Atlanta-based positions by the end of 2022.
Like many, Hootsuite has been feeling the effects of the changing economic environment in a variety of ways. Sources previously indicated to BetaKit that a less than welcoming public market caused the company to postpone a planned initial public offering.
The layoffs also follow years of struggle for Hootsuite, which was once valued by research firm CB Insights at $1 billion USD. Focus and product struggles led to reports that Hootsuite was seeking a buyer in April 2019, but could not secure a valuation higher than $700 million USD. No deal went through, and, in May 2019, it was revealed that Hootsuite had laid off 100 employees, or 10 percent of its workforce.
Later that year, Holmes stepped back from his role as CEO and the social media company overhauled its executive team, with the company announcing in June 2020 that Keiser, former COO at US-based Zendesk, would take over as CEO.
Since Keiser joined Hootsuite, the company has focused on a push into e-commerce and customer service software, and made changes to its executive team, including bringing on Tiziana Figliolia as CFO and Natalia Williams and chief product officer. Hootsuite also revamped its board with new members that appeared to allow it to better act as a public company board. Those changes include Hootsuite co-founder Ryan Holmes stepping down as chairman to be replaced by Julie Herendeen; as well as the additions of Christiane Pendarvis of Savage X Fenty; Dave Singh of Tucows; and Carl Sparks of Interlock Partners.