CEO Zig Serafin said the decision to make the layoffs was difficult but was “necessary” in order to further the company’s growth.
“Rapid hiring was essential to enable our growth up to this point, but it also created complexity that does not support continued growth at our scale,” Serafin said in the memo. “Simply put, the organization structures, work processes and the way we made decisions previously don’t work for the company we’ve become, or the company we aspire to be.”
In addition to the layoffs, Serafin said several hundred roles across the company would be changing or moving locations over the course of the next year. Serafin said the restructuring will allow for teams to work together better and and make it easier for customers and partners to do business with the company. He also said the changes won’t be easy and it will be a tough day for several employees within the company.
“These are big changes. There’s no way around it,” said Serafin. “They will directly impact many amazing and talented teammates and friends who we care deeply about, and these changes will impact all of us.”
Qualtrics was founded in 2002 in Utah by Scott Smith and his two sons, Ryan and Jared Smith and Stuart Orgill. It has since grown to a global market of 5,000 employees worldwide with headquarter offices in Seattle and Provo. According to the memo sent to employees on Wednesday, Qualtrics is a leader in experience management with more than 20,000 customers globally.
Employees who are being let go as part of the company’s restructuring in the U.S. will be compensated with a minimum of 10 weeks of severance based on tenure, health insurance, and performance bonuses. Employees elsewhere globally are promised a similar level of support “aligned with local employment laws.”
“To those who are leaving, I am truly sorry,” said Serafin. “I know this explanation doesn’t make it any better for you. On behalf of the entire company, thank you for everything you’ve given to Qualtrics and for the chapters you have helped to write.”