That artificial intelligence will eat up jobs is more or less clear. The AI startup, Informatica, based out of the Bay Area, has let go 10 per cent of its staff.
Was the company not doing well was the question that arises in the mind of anyone reading this news. But the answer is that the company was doing quite well. In fact, in the third quarter, it did exceptionally well. So well that it realised it could do without 545 of its employees!
The job cuts are part of the enterprise cloud data-management firm’s growth strategy and restructuring plans apparently, aimed at ensuring better efficiency and success in the long run.
The layoffs will be spread over the next one year or so and is expected to result in cost savings of up to $84 million. This will also bring the company closer to becoming an AI-powered cloud firm. The company hopes to save at least $35 million in global real estate.
This move will help the company save costs, globally, without compromising on its expectations of growth.
Media reports say that just before the layoff announcement, the company also authorized a share buyback worth $200 million of its own stock.
Amit Wali, an Indian American, is the chief executive officer of the company. The company’s subscription annual recurring revenue (ARR) in the third quarter increased 15 per cent year-over-year to $1.08 billion.