Layoff Alert: Zapier Lays off 10% of its workforce.

On June 28, 2023, a message was shared with Zapier workforce regarding the company’s plans to position itself for success in the future. The announcement informed employees about a difficult decision to reduce the current team size by approximately 10%. The decision was made by the executive team, with input from the board, and the ultimate responsibility lies with the author of the message. The post also addressed the reasons behind this decision, the support provided to departing teammates, and the intended path forward.

Reasons for the decision were outlined, including facing a different set of competitive challenges, economic factors affecting certain investments, and the changing landscape due to the emergence of AI and LLMs. The company acknowledged being overstaffed in some areas and understaffed in others. Zapier recognized the significance of playing a crucial role in utilizing AI for work automation and emphasized the need to align with the evolving AI landscape by focusing on early product development and AI integration.

The measures being taken include reducing the team size by around 10% across all departments, with a focus on roles less directly aligned with the company’s strategy and goals. Efforts are made to minimize the impact on teammates by transitioning them to roles of growing relevance where possible. Non-essential expenses that are not related to headcount are being trimmed, such as reconsidering large in-person team events, consolidating perks, and streamlining vendor and software tool usage.

To optimize the organizational structure and enable better customer service, the company is flattening its org structure by consolidating management responsibilities. Some teams will be merged, and some managers may transition to individual contributor (IC) roles without a change in salary. Managers affected by this transition can expect to receive further details from their department’s executive by the end of the week.

More can be read here – https://zapier.com/blog/changes-at-zapier/