Cloud-based K-12 education software company PowerSchool Holdings Inc. plans to lay off 11 employees at its Folsom headquarters by the end of January.
PowerSchool (NYSE: PWSC) is publicly traded, and it hasn’t made an official announcement about the layoffs companywide, but a spokesperson confirmed that the local number was 11.
“Every year we look at how we can be more efficient and invest in the growth areas where we see most demand in our market. This year, that included a small, targeted workforce reduction in some parts of our business so that we can quickly and efficiently innovate and invest in Generative AI across our products and deliver market-leading products to our customers,” states an email response from the company.
PowerSchool has 3,400 employees across the country, and in offices in India, the Middle East and Europe, which it has opened organically and acquired through 21 mergers over the past eight years. Its most recent acquisition, announced last week, was of Baltimore-based Allovue, which offers a suite of software for budgeting and management for K-12 administrators. The value of that acquisition was not made public.
In October, PowerSchool completed its $300 million acquisition of SchoolMessenger, a provider of communications tools for the K-12 market that had about 200 employees, most of them remote workers.
PowerSchool ranked 45th on the Sacramento Business Journal’s list of Fastest Growing Companies in 2023 for 45% revenue growth from 2020 to 2022, to $630 million.
The company anticipates revenue to reach around $700 million for 2023, it said in a news release last month.
PowerSchool launched in Folsom in 1997, offering online tracking of grades and attendance. Over the years, it's added more functionality and modules to support school administrators, teachers, parents and students. PowerSchool now has 20 products, and it supports 50 million students in more than 90 countries and more than 16,000 customers, including more than 90 of the top 100 school districts by student enrollment in the U.S.
PowerSchool became a publicly traded company through an initial public offering in 2021 that netted the company $766 million.
An earlier version of this story included incorrect information about the job functions of the employees who are being laid off.
