New Delhi: US-based software company F5 has announced to lay off 9 percent of its workforce or about 623 employees globally amid macroeconomic uncertainty. “As we look at the past six months, it’s clear that rising interest rates, geopolitical events, and macroeconomic uncertainty have dramatically affected our customers’ spending patterns,” Francois Locoh-Donou, F5’s president, CEO and director, wrote in an email to F5 workers.
“We do not believe this environment will persist, but we also do not know what the new normal’ will look like when it comes. “Because of this uncertainty, we must take measures to decrease our costs without jeopardizing our future growth trajectory,” he added. (Also Read: Twitter Restores Blue Tick For Users Having These Many Followers: Report)
According to the company, the workforce reduction will affect employees from various regions, including the US, EMEA (Europe, the Middle East, and Africa), Australia, Japan, New Zealand, Canada, Latin America, APCJ, and India. (Also Read: This Delhi Family Attended Daughter’s Wedding In US Without Visa: Yes, You Heard That Right)
Moreover, the software firm said that it plans to spend $45 million on severance benefits and anticipates annual savings of $130 million from reducing its headcount.
Those affected will receive generous severance compensation, their Q2 FY23 MBO (Management by Objectives) payout and May 1 stock vest, outplacement assistance, retention of F5 laptops where possible, and immigration support.
In addition, the company will implement further reductions to travel and expense budgets and shift large internal company events to a virtual format.