On Thursday, customer experience firm Sprinklr has laid off around 4 per cent of its global workforce — or more than 100 employees — as it downsizes its total headcount amid the ongoing economic uncertainty and the possibility of recession.
Last week, Sprinklr began the layoff drive and is snipping off its workforce in India, the U.S. and other regions. This has been learned from people familiar with the matter and confirmed with the company through an email.
A spokesperson for the company said that the “strategic business decision” impacted employees across certain targeted regions, segments and support functions.
In a prepared statement, the spokesperson said, “While these decisions are extremely hard to make, it is the right decision for our long-term success as we shift from a capacity-driven to productivity-driven business model. Our first priority is to support our employees with the greatest care and respect, show appreciation for their contributions to Sprinklr, and to assist them in their transition. We then will realign with a focus on making it easier to sell, and to deliver profitable growth to the business.”
On February 7, the New York-based firm informed the initial batch of its affected employees. It was later brought to the notice of the media outlets that the decision did not affect any C-level executives.
Sprinklr did not reveal the exact number of employees being slacked off due to the decision. According to an SEC filing, the company had 3,245 employees as of January 31, 2022. Out of the total workforce at the time, 933 were based in the United States and 2,312 were based in other parts of the world, including 1,580 in India.
In the end of 2022, Sprinklr has joined hands with entities — including Samsung, Sitel Group and Europe’s largest department store, El Corte — to improve shopping experiences for their customers. Although, the current economic slowdown in the market is likely to prompt companies to cut back on non-essential expenses, including marketing and social media management, which may lead to a decrease in demand for Sprinklr’s services. This is not the first instance that Sprinklr slacked off its employees in the past year. In July, the company allegedly cut at least 50 roles in its global marketing department.
In its third quarter earnings, Sprinklr showed a 32 per cent year-on-year increase in its revenue to $127.1 million from $96.3 million a year in 2022. However, the company’s operating loss in the quarter valued to $26.3 million from $15.3 million.
On Tuesday, Sprinklr’s shares traded at $11.02 per share, with a market cap of $2.87 billion.
