Start-ups
Culture Amp Cuts 70 Jobs in Third Round of Layoffs Since 2023
The Melbourne-based employee engagement software company has cut 70 jobs, representing around 9% of its workforce, as new chief executive Caroline Rawlinson continues restructuring the HR technology company in its third round of layoffs in three years.
Australian employee engagement platform Culture Amp has cut about 70 employees or nearly 9 percent of its workforce as part of a planned, globe-spanning restructure spearheaded by chief executive of the business Caroline Rawlinson.
The layoffs are the third round to be undertaken by the software firm, which is headquartered in Melbourne. About 90 staff members were dismissed in early 2023, while late 2023 redundancies saw 60 staff members lose their jobs.
Culture Amp, CEO, Caroline Rawlinson said in a statement: “I led a global restructure and unfortunately had to make the difficult decision to part ways with 70 valued team members and friends around the world. While this change was necessary to improve decision speed, agility and our structure as we scale and focus on product innovation for the future, I am deeply sorry to impact so many people.
”“We are extremely grateful for the hard work and dedication of every employee impacted and will support them with generous severance, outplacement support and benefits continuation,”Rawlinson said.
The global restructure is set to streamline the business's decision-making processes and will accelerate execution through its simplified reporting lines and removing the middle layers of management. This move comes as software vendors forHR continue to modify their companies by heavily focusing on AI innovation.
Leading a new era and agenda in business
The leadership change for Culture Amp proceeds with staff cuts being made across all teams, following co-founder and longtime CEO, Didier Elzinga, stepping down from the company to pursue his next opportunity and being replaced by Caroline Rawlinson as CEO of the company's next stage.
Founded in 2009 in Melbourne by Didier Elzinga, Doug English, Rod Hamilton and Jon William, Culture Amp provides customer and employee experience software helping organizations with employee engagement, goal setting, performance appraisal, ongoing feedback, and people analytics.
Its software also includes AI-powered coaching, People Science consulting, and executive coaching and workforce training services that leverage employees’ data to achieve better outcomes.
With offices in Australia, the United States, the United Kingdom and Germany, Culture Amp boasts customers from numerous markets across the globe. The company’s Series F investment, raising US$150 million, in 2021 led by Sequoia Capital China and TDM Growth Partners valued the firm at approximately US$1.5 billion.
Not just an HR tech business, but a shift
More broadly speaking the recently revealed layoffs are also accompanied by a value decrease in its valuations by Blackbird Ventures, an investment group for it, while all other global enterprise software developers have been monitoring their expenditures as they continue to pursue development for their product line within the current climate for Artificial Intelligence.
With a rise in AI advancements for HR software products, businesses are focusing on those enhancements that support their growing workforces, boost productivity, and streamline operational performance.
Source: Capital Brief
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