Workhuman, which specialises in employee rewards, is set to make 10% of its Humans redundant.
The Irish-founded tech company, which is co-headquartered in Dublin and Massachusetts, employs 1,300 people globally.
The company, based in Parkwest in west Dublin, said it employs c.600 people in Ireland,.
In a statement released on the company website, titled Realigning our Investments and Reducing our Workforce, CEO Eric Mosley stated: “We’ve made the extremely difficult decision to reduce our global workforce by approximately 10% of our Humans – teammates and friends who have helped build Workhuman to what it is today.
“There are many reasons for this reduction. We need to realign our investments with new strategic initiatives and opportunities, we need to balance for growth and profitability, and we need to exercise prudence given the volatile macro environment.
“This reduction is part of a broader set of organisational and strategic investment changes we’re making to ensure we continue to deliver growth and profitability, and invest in areas of the business that are most aligned with our strategic objectives and will deliver the greatest customer value.”
Mosley added: “It’s important to note that while we are eliminating roles in some areas, we will continue to hire and invest in strategic initiatives that are critical to our continued growth and success.”
The chief executive also went on detail the severance package that will be made available to those who lose their jobs.
“Whilst there are small differences by geography, we will be offering severance of a minimum of three months plus two weeks per year of service, the sum capped at nine months. We will also pay out accrued unused PTO. Healthcare benefits will also be extended for a minimum of three months.”
“Assistance will also be provided for people who are looking to update their CV ahead of returning into the jobs market, along with “services for mental health and wellbeing support for both impacted and remaining Humans globally.”
In a statement the company said a consultation process with potentially impacted employees will commence in the coming days. The company will also inform the Minister for Enterprise, Trade and Employment as part of this process.
The main banker for operating company Globoforce Group plc is Silicon Valley Bank.
In the 2021 accounts filing signed off by directors in August 2022, Globoforce Group plc reported turnover increasing by 28% to $876m. Operating profit was $70m, a $5m reduction on the previous year.
Net cash inflow from operating activities in 2021 was $206m and shareholders were paid dividends of $100m following a $92m dividend payout the previous year.
Employment at Globoforce Group plc increased to an average monthly number of 787 people in 2021 compared with 668 people in Covid-impacted 2020. The salary overhead at the company was $132m in 2021 compared with $94m in 2020.
Net liabilities in December 2021 amounted to $144m. This included $671m in deferred revenue, defined as amounts billed to customers for which revenue has not been recognised, and primarily consists of the value of GloboCerts that have not been redeemed.
Auditors EY explained that amounts in deferred revenue related to redemption of rewards are classified as a current liability as the amounts are subject to immediate redemption by the customer’s employees.
Photo: Workhuman CEO Eric Mosley. (Pic Naoise Culhane)