Zendesk plans to lay off roughly 300 employees -- or about 4.9% of staff at the cloud-based customer support and IT service management (ITSM) software provider, an SEC filing revealed.

Among the key factoids from the filing:

  • Zendesk's board of directors approved the layoff plan on November 3, 2022.
  • This decision was "based on cost-reduction initiatives intended to reduce operating expenses and sharpen Zendesk’s focus on key growth priorities."
  • The job cuts will cost Zendesk about $28 million in "connection with the reduction in force, primarily consisting of severance payments, employee benefits and related costs.
  • Most of the cuts should be completed by the first quarter of 2023, though some cuts may take a bit longer based on local laws.

Related: See all technology industry layoffs listed here.

Zendesk Company Sale, Business Challenges

The Zendesk layoffs emerge among the company's pending $10.2 billion sale to two private equity firms -- namely, Hellman & Friedman and Permira.

The sale price is far below the $15.25 billion valuation that Zendesk had in April 2022. Hence, Light Street Capital has objected to the pending deal.

Although Zendesk is growing, the cloud software provider faces concerns from shareholder activists who believe the company has been mismanaged.

Zendesk Company Timeline

Among the Zendesk developments and factoids to keep in mind: