The new tranche of layoffs comes just six months after the company let go of 300 staffers and hired a new CEO in order to navigate its operations through macroeconomic distress. Credit: Thinkstock CRM software provider Zendesk is reducing its workforce by another 8%, citing macroeconomic uncertainty, just six months after the company laid off 300 staffers for the same reason. “All this is difficult news to share, but I’ve made the decision to reduce our workforce by 8% at Zendesk,” CEO Tom Eggemeier wrote in an email to all employees, which was later posted as a blog. The new tranche of layoffs, according to Eggemeier, can be attributed to continued macroeconomic uncertainty and increased competition from rivals. “When I joined at the end of November, I’d hoped a combination of improving macroeconomic conditions and streamlining costs would help us avoid this moment. Unfortunately, macroeconomic conditions have not improved and we find ourselves in an increasingly competitive marketplace,” Eggemeier wrote. In November, Zendesk laid off around 300 staffers from its global workforce of 5,450 employees to reduce operating expenses because the company hired more employees than were commensurate with its growth projections. “From 2020 – 2022, our hiring outpaced our business realities,” Eggemeier, who joined the company in November last year, wrote. Zendesk’s executive team had taken responsibility for the first round of layoffs that came months after it was acquired by a consortium of private equity firms for $10.2 billion. Eggemeier also pointed out that Zendesk’s enterprise customers were considering adopting newer technologies such as generative AI and said Zendesk would tune its employee structure to help customers meet their desired goals. “Looking ahead, I believe we have an incredible opportunity to lead the new era of intelligent CX. The new solutions we introduced at Relate — Zendesk AI and Conversational Commerce — will help our customers transform the way they do business,” Eggemeier wrote. The severance package for affected employees would include three months of base salary, a prorated portion of an annual bonus, health insurance benefits, and immigration support among other things, the CEO wrote. Several technology companies such as Amazon, Meta, and Microsoft have held multiple rounds of layoffs since October last year due to tepid demand arising out of macroeconomic uncertainty and global phenomenon such as the Russia-Ukraine war. These layoffs have continued in 2023 with more staffers being laid off than the previous year. According to data compiled by Layoffs.fyi, the online tracker keeping tabs on job losses in the technology sector, 726 tech companies have laid off about 200,846 staff so far this year, compared to 164,709 layoffs last year. Related content brandpost Sponsored by Randstad How CIOs can use internal mobility and redeployment for successful digital transformation The role of your people is key a factor in the success of digital transformation. Find out how redeployment and talent transition experts, Randstad RiseSmart, can help organizations at all stages of the digital transformation journey. By Neal Weinberg May 28, 2024 5 mins Digital Transformation opinion Navigating the Cybersecurity Threat Landscape in the UAE: Strategies for CISOs By Andrea Benito May 28, 2024 4 mins feature 10 most difficult-to-fill IT roles — and how to address the gap With AI, cybersecurity, and data analytics talent in short supply, IT leaders are upskilling, recruiting from the business, highlighting culture, and relying on contractors to secure the talent they need. By Stephanie Overby May 28, 2024 11 mins Hiring Staff Management feature Sun Country enhances customer experience with IT The low-cost regional airline turned to IT to develop a self-service e-voucher program aimed at easing the hassles that come with flight delays and cancellations. By Paula Rooney May 28, 2024 6 mins CIO 100 Travel and Hospitality Industry Digital Transformation PODCASTS VIDEOS RESOURCES EVENTS SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe