Four months after Telus International (NYSE: TIXT) closed on its buyout of WillowTree, an app developer with a sizable presence in Durham, the company has confirmed layoffs.
On Wednesday, WillowTree confirmed a restructuring action that impacts about 120 employees. In Durham, 25 people were impacted, according to the company, which is based in Charlottesville, Virginia.
WillowTree has 158 employees in Durham, according to the company.
All impacted employees are being provided with a separation package that includes severance pay, outplacement assistance and health insurance continuation, according to the company.
“Today, as part of our company’s commitment to continuous improvement and to better leverage emerging technologies to best serve our clients, WillowTree is restructuring its team to be optimally positioned for long-term growth and success,” says a statement from WillowTree President Tobias Dengel. “This will further enable us to sharpen our focus on marketing and creative services, digital product development and product delivery, as well as data and AI solutions and consulting. Our company is confident that this evolution will result in a stronger company, optimized for operational agility and velocity.”
Canadian firm Telus announced its $1.2 billion buyout of WillowTree in October. In January after the deal formally closed, Telus CEO Jeff Puritt said the plan was to grow WillowTree's operation, including in Durham. Puritt told Triangle Business Journal that job growth could number in the thousands over the next few years. At the time, WillowTree had about 1,100 people across its entire operation.
“My ambition is to see if we can’t grow it to 10,000 people as fast as we can,” Puritt said at the time.
Telus International, part of multinational holding company Telus Corporation (NYSE: TU), designs, builds and delivers next-generation solutions in areas such as artificial intelligence and content moderation. WillowTree adds front-end design and build competencies to its product suite.
WillowTree announced its initial plans to bring 100 employees to Durham seven years ago. The company reported about $140 million in revenue for 2021.
