F5 has declared its plan to cut its workforce by 9 per cent. Amid the unstable macroeconomic conditions, the US-based software company will let go of approximately 623 employees across the world. The decision comes as the company wishes to reduce costs without compromising the company’s future growth prospects.
In an internal mail to employees, Francois Locoh-Donou, CEO, president, and director, F5, detailed how the company’s customers’ spending patterns have been significantly impacted by the increase in interest rates, geopolitical events, and macroeconomic uncertainty over the last six months. The mail also stated that the company’s conditions might get better in the coming time, but they are uncertain about what the future holds and how it will affect them.
Moreover, the firm will enforce additional cuts to travel and expenses budgets and move significant internal corporate events to a virtual format.
Additionally, the software company has disclosed that it intends to allocate $45 million towards severance packages and foresees annual savings of $130 million from the reduction in its workforce. The impacted employees will be provided with substantial severance pay, their Q2 FY23 MBO (Management by Objectives) payout, and the May 1 stock vest. They will also be given outplacement aid, retention of F5 laptops wherever feasible, and support with immigration.
The company has stated that the downsizing of its workforce will have an impact on employees across multiple regions, namely the US, EMEA (Europe, the Middle East and Africa), Australia, Japan, New Zealand, Canada, Latin America, APCJ, and India.
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