In the midst of global lay-offs in the technology industry, Sumo Logic, a California-based big data analytics software company, has made the difficult decision to reduce its workforce by laying off 79 employees.
Sumo Logic’s CEO, Joe Kim, communicated the job cuts to the company’s employees via email. According to a report, Kim stated that one group of workers would receive an email informing them about their roles being eliminated, while another group would receive an email assuring them that their positions were secure.
Following the layoffs, certain employees of the company resorted to sharing their experiences anonymously on the online company review platform, Blind. According to their posts, the employees who were let go mentioned that they received a two-month severance package but did not receive any additional benefits.
Acquisition by Francisco Partners
In May, Sumo Logic made an announcement regarding the completion of its acquisition by Francisco Partners. Francisco Partners’ acquisition of Sumo Logic was officially announced on February 9, 2023. The agreement involved a cash offer of $12.05 per share, valuing Sumo Logic at approximately $1.7 billion.
The acquisition process concluded on May 12, 2023, leading to the delisting of Sumo Logic’s common stock from the NASDAQ stock exchange. This strategic move by Francisco Partners aligns with their objective of supporting technology companies that exhibit high growth, possess a strong market presence, and ensure customer satisfaction.
According to the agreement, Sumo Logic stockholders received $12.05 per share in cash, which represents a premium of approximately 57 per cent.
Other major lay-offs in tech
Between January and May 2023, the tech sector witnessed a significant wave of layoffs, as numerous companies grappled with economic challenges and strategic realignments. According to Layoffs.fyi, a website tracking tech layoffs, over 740 tech companies globally laid off approximately 190,795 individuals during this period.
Several prominent tech giants stood out for their substantial employee reductions. Amazon led with 18,000 job cuts, followed by Meta (formerly Facebook) with 17,000, Google with 12,000, Microsoft with 10,000, and Salesforce with 9,000.
These layoffs had a widespread impact, affecting diverse industries and regions. Notably, the United States accounted for about 68% of the total layoffs. The reasons behind these workforce reductions encompassed cost-cutting measures, restructuring efforts, shifting priorities, market pressures, and the influence of societal factors.
