Informatica, has revealed plans to reduce its workforce by 7% in the first quarter of 2023. The layoffs will affect about 450 employees out of the company’s global workforce of over 5,500.
Reportedly, the company that specializes in managing data, stated that the layoffs will help them align their workforce with their cloud-based priorities and reduce costs.
Informatica stated that it anticipates the layoffs to be finished by the first quarter of 2023, but added that there may be limited exceptions. The company also mentioned that the financial expenses related to the restructuring plan will not be included in its earnings for the quarter ending December, which will be announced in February.
As a result of the workforce reduction, Informatica will incur one-time costs of around $25 to $35 million, according to a company filing. These costs will include expenses related to transitioning employees, providing notice, severance pay, and employee benefits.
In addition to the layoffs, Informatica also announced that Michael McLaughlin would be replacing Eric Brown as the company’s chief financial officer. McLaughlin previously served as the CFO of the Fair Issac Corporation before joining Informatica.
The company’s decision to lay off employees comes shortly after other major tech companies like Amazon and Salesforce announced significant layoffs earlier in the year. The layoffs in technology companies have become a regular occurrence towards the end of 2022 as companies feared an economic slowdown due to various factors such as the pandemic, geopolitical tensions, and natural disasters.