S|W: The SaaS Weekly – Big Tech discovers austerity

OpenText building
Plus: OpenText acquires Micro Focus.

The SaaS Weekly is a weekly newsletter covering major SaaS news from Canada and around the globe.

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OpenText closes $5.8 billion USD acquisition of Micro Focus, makes workforce reduction (BETAKIT)

OpenText said that it expects to balance the combined entities by reducing its workforce by eight percent, due to the acquisition of Micro Focus.

Meta stock perks up as the company promises a ‘year of efficiency’ (TECHCRUNCH)

After the roughest year in its history, Meta is starting to bounce back. Facebook parent Meta beat revenue expectations in the final quarter of 2022, bringing in $32.2 billion. Those gains combined with Meta’s aggressive cuts and its promise of an efficient 2023 drove the company’s stock price up.

VerticalScope becomes latest public tech firm to make layoffs with 22 percent staff reduction (BETAKIT)

The cuts, which impact 22 percent of VerticalScope’s team, were announced by the company following market close on February 1.

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Alphabet misses on earnings and revenue as YouTube falls short (CNBC)

The company said it would take a charge of between $1.9 billion and $2.3 billion, mostly in the first quarter of 2023, related to the layoffs of 12,000 employees it announced in January.

Faced with insolvency, Ottawa’s Tehama forges ahead with founder-backed restructuring (BETAKIT)

Court filings viewed by BetaKit show that Tehama applied for insolvency under the Canadian Creditors Arrangements Act as of January 20. Accounting firm Deloitte has been appointed to oversee Tehmaha’s insolvency.

Tech’s Biggest Companies Discover Austerity, to the Relief of Investors (THE NEW YORK TIMES)

After years of expansion and billions in profits, Big Tech is pulling back from its famously lavish spending as a long boom finally ends.

How to grow investment in women-led startups (BETAKIT)

Women are less likely to get funded and are woefully underrepresented in both the startup founder and venture capital (VC) ranks. However, we’re approaching what might later be called a tipping point.

TikTok’s chief to testify before congress in March (WALL STREET JOURNAL)

Shou Zi Chew will appear before the House Energy and Commerce Committee on March 23, a committee spokesman said, in what would be the first appearance of a TikTok CEO before a congressional panel.

AppDirect acquires TBI to expand offerings for technology advisors (BETAKIT)

The acquisition closed on January 31 for an undisclosed amount. TBI’s engineering and educational resources will merge with AppDirect’s advisors to provide them with digital tools to find, buy, and manage technology solutions to expand their portfolio.

Google’s Canadian employees in limbo as they await layoff details (THE GLOBE AND MAIL)

When Sundar Pichai, Alphabet chief executive officer, told staff in a memo on Jan. 20 that 6 percent of them will be let go in the coming days, layoffs in the United States were effective immediately. But outside the U.S., Alphabet has kept hundreds of thousands of tech workers in limbo, including staff and their managers in Canada.

Hippoc announces $3 million to help marketers test ad campaigns using neuroscience (BETAKIT)

The use of neuroscience in marketing communication is referred to as ‘neuromarketing.’ It collects cognitive data from consumers based on how they perceive advertisements. This tech segment has been around for a couple of decades, and is based on existing marketing content or simulations under research studies.

Byju’s continues to cut jobs, another 1,000 employees laid off (THE ECONOMIC TIMES)

Many senior vice presidents drawing salaries of Rs 1 crore and above lost their jobs in the Bengaluru-based edtech major’s latest round of layoffs conducted over the last two weeks of January, one of the sources said.

CIBC Innovation Banking president Mark McQueen to depart for “next adventure” (BETAKIT)

When McQueen will be officially leaving CIBC, and who his successor might be, is unclear at this time. McQueen has been leading CIBC Innovation Banking since the bank acquired Wellington Financial in 2018.

Okta to cut 300 jobs citing overhiring, ‘execution challenges’ (BNN BLOOMBERG)

The cuts — about 5% of the workforce — are due to overhiring and “execution challenges,” wrote Chief Executive Officer Todd McKinnon in a letter to employees Thursday. The company will focus on reducing spending and improving profitability moving forward, McKinnon said. Okta will incur about $15 million in restructuring costs, it said in a filing.

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Michael Edgar

Michael Edgar

Michael is a multimedia journalist working out of the U.K. and a staff writer for BetaKit.

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