Bellevue-based employee well-being company Limeade is laying off 15% of its workforce.
Limeade, which announced the layoffs Thursday, expects to complete the reduction by the end of the first quarter. The company said in its 2021 annual report it had 312 total employees.
“This restructure is a difficult but necessary step," Henry Albrecht, Limeade founder and CEO, said in a news release. "I speak on behalf of the Board and every company leader in sharing my heartfelt and immense gratitude to all of the LimeMates who have served our noble purpose.”
The company expects to incur about $1.3 million in costs tied to the layoffs due to severance payments and benefits, according to the release, and it expects annual savings to be around $7 million. Limeade said the restructure affects the research and development, product, customer operations, customer success, marketing and sales teams.
The company did not provide further details.
Along with the layoffs, Limeade on Thursday also announced Todd Spartz, the company's chief financial officer, will leave the company Wednesday "to pursue another opportunity in the corporate sector." Limeade is conducting a search for his replacement, and the current finance team will assume the CFO duties in the meantime. Limeade Controller Paul Crick will lead the team "with assistance from outside vendors as appropriate and necessary."
Limeade, founded in 2006, makes tools to help clients engage their employees. The company offers surveys, quizzes and analytics, and it helps clients direct employees to relevant benefits. Limeade's clients include the engineering company Bosch and the pharmaceutical company Perrigo. Limeade in 2021 acquired TinyPulse, a Seattle-based employee feedback software company, in an $8.8 million deal.
In its third quarter 2022 financial results, Limeade said it generated $14.5 million in revenue for the quarter, up from $14.1 million during the third quarter of 2021.
Limeade is one of multiple local companies to lay off employees this week. Customer and employee experience company Qualtrics, which has dual headquarters in Seattle and Provo, Utah, on Wednesday disclosed it is laying off about 270 workers. Bellevue-based device management startup Esper, meanwhile, on Tuesday confirmed it laid off 21% of its staff. Esper laid off 12% of its staff in June.
