US-based software company F5 has announced job cuts of 623 employees globally as part of cross-cutting measure.
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San Francisco: US-based software company F5 has announced to lay off 9 per cent of its workforce or about 623 employees globally amid macroeconomic uncertainty.
“As we look at the past six months, it’s clear that rising interest rates, geopolitical events, and macroeconomic uncertainty have dramatically affected our customers’ spending patterns. We do not believe this environment will persist, but we also do not know what the anew normal’ will look like when it comes,” Francois Locoh-Donou, F5’s president, CEO and director, wrote in an email to F5 workers.
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“Because of this uncertainty, we must take measures to decrease our costs without jeopardizing our future growth trajectory,” he added.
According to the company, the workforce reduction will affect employees from various regions, including the US, EMEA (Europe, the Middle East and Africa), Australia, Japan, New Zealand, Canada, Latin America, APCJ, and India.
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Moreover, the software firm said that it plans to spend $45 million on severance benefits and anticipates annual savings of $130 million from reducing its headcount.
Those affected will receive generous severance compensation, their Q2 FY23 MBO (Management by Objectives) payout and May 1 stock vest, outplacement assistance, retention of F5 laptops where possible, and immigration support.
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In addition, the company will implement further reductions to travel and expense budgets and shift large internal company events to a virtual format.
