According to a company filing with the US Securities and Exchange Commission, Informatica is laying off about 450 employees, or about 7% of its workforce.
“So today I am sharing the difficult news that we are eliminating positions or entering the consultation process in several business functions which will impact approximately 7% of our very talented colleagues. We will reach out to impacted individuals and our global team this morning and, consistent with our Values we will act with the utmost compassion and respect throughout this process.” said the chief executive officer of Informatica. “Departing colleagues will receive generous financial, health and career resources to support them through their transition.”
“The plan is intended to better align the company’s global workforce and cost base with its cloud-focused strategic priorities and current business needs,” Informatica later said in a SEC filing.
Informatica anticipates non-recurring charges of $25 million to $35 million as a result of the layoffs. This is mostly due to cash outlays for employee transition, notice period and severance pay, and employee benefits.
The company also announced that current Chief Financial Officer Eric Brown will step down and be replaced by Michael McLaughlin, who will take over as Informatica CFO and executive vice president on January 16.
The company said the layoffs “will be substantially complete by the end of the first quarter of 2023.” The move will result in non-recurring charges of approximately $25 million to $35 million, mostly incurred in the first quarter.
The sources for this piece include an article in Infoworld.