Salsify Inc. has laid off approximately 11% of its workforce.
As employees at the e-commerce software company began posting on LinkedIn about being let go, Salsify confirmed to BostInno that it had eliminated 90 positions, with the majority of them in the U.S.
Salsify cited its rapid growth over the past two years as the reason behind its recent layoffs. Since 2020, Salsify has acquired SKUvantage and Alkemics and more than doubled its employee base, a company spokesperson told BostInno via email.
“All of this growth and change in such a short period of time created some redundancies and made Salsify less financially efficient than in years past. There was a need to restructure to better align the organization for our next phase of growth,” the Salsify spokesperson said.
The Boston-based company declined to comment on the company’s current employee count or note whether employees in the Bay State were impacted by layoffs. Based on the company’s 11% layoff estimate, Salsify had over 800 employees prior to making cuts.
In October 2021, at the time of its second acquisition that year, Salsify said it had almost 700 global employees.
Salsify previously laid off 60 employees in April 2020 to accommodate "much slower 2020 growth than initially planned" due to the emerging Covid-19 pandemic.
The company said it extended health insurance coverage for laid-off employees beyond the severance periods “to provide additional coverage during these uncertain times.”
Salsify remains “well-capitalized” with no debt, per a company spokesperson, and is in a “strong position to provide value to our customers for many more years to come.”
Salsify became one of Boston’s first unicorns of 2022 after it raised a new $200 million investment. CEO Jason Purcell said at the time that this funding propelled the company's valuation to over $1 billion for the first time in its 10-year history. The fundraise put Salsify’s post-money valuation at $2 billion.
When the Business Journal spoke to Purcell at the time of Salsify’s fundraising earlier this year, the CEO said they’re trying to “build the company in a way that can operate as a public company.” A Salsify spokesperson confirmed that these layoffs have not changed the company’s aspirations.
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