ZoomInfo Technologies Inc. (Nasdaq: ZI) is cutting roughly 3% of its workforce, according to a regulatory filing.
Prior to this move, the Vancouver-based software maker had 3,500 global employees, with about 670 based in Oregon and Southwest Washington.
The layoffs are part of a plan to “flatten the organizational structure, speed decision making and enable investment in key opportunities for long-term growth while driving continued profitability,” the company said in a filing to the Securities and Exchange Commission.
The company expects to take a restructuring charge of $6 million in the second quarter.
ZoomInfo sells business intelligence software to sales organizations. Its huge data set and software integrates with other business technology like customer relationship management and email tools. The company is focused on helping customers drive sales and go-to-market strategies.
Affected employees will receive an average of 10 weeks of severance pay based on job level and tenure. The company, which went public in 2020, is accelerating vesting for certain employee equity. The company is providing a COBRA health insurance subsidy for U.S.-based employees and a lump sum equal to three months of education fund deductions for Israel-based employees.
The company didn’t offer details on what roles are being affected but gave this statement:
As we focus on driving increased efficiency across our business, we recently made the difficult decision to inform about 120 employees across the company, or about 3 percent of the total workforce, that their jobs have been eliminated. These changes will flatten our structure and give us the opportunity to be more agile with decision-making and execution.
Based on posts appearing on LinkedIn, affected employees worked in including marketing, human resources and operations.
ZoomInfo reported first quarter earnings last month and saw revenue of $300.7 million, up 24% year-over-year. It had profit of $44.5 million or 11 cents per share. The company noted that despite the restructuring it will continue to hire in sales, engineering and customer success as was indicated in its first-quarter earnings. The company also noted it will continue to invest in areas to “leverage the company’s generative AI capabilities, while focusing on efficiency throughout the rest of the organization and hiring where we think the investments will make the greatest impact.”
Earlier this week the company announced a product update around generative AI and automation in its Chorus platform that will create post meeting summaries and action items. ZoomInfo acquired AI-maker Chorus in 2021.
In September 2021, ZoomInfo signed a lease for space in the four-story, 366,000 Terminal 1 building along the Vancouver waterfront. The plan at the time was to move in 2025 and eventually occupy the entire building.
Shares of ZoomInfo closed up 2% Friday at $26.45, and were up slightly after-hours trading.
