Sprinklr, a prominent U.S. technology firm, has announced a significant reduction in its workforce, laying off approximately 15% of its employees. This move affects around 500 individuals and comes in the wake of previous layoffs earlier this year. The company stated that its business performance has not met expectations, prompting a strategic realignment with an emphasis on AI-led experiences.
The recent layoffs follow two previous rounds of workforce reductions. In May, Sprinklr cut about 3% of its workforce, and earlier in 2023, it reduced headcount by 4%. These actions collectively impacted roughly 200 employees. This pattern of workforce adjustment underscores the company's ongoing challenges in maintaining its business trajectory.
With a global customer base exceeding 1,800, including industry giants such as Microsoft, P&G, and Samsung, Sprinklr is a significant player in the tech sector. According to its most recent annual report, the company employs 3,869 people worldwide. Notably, 2,276 of these employees are based in India, while 787 are located in the United States.
The decision to downsize the workforce is part of Sprinklr's broader strategy to shift its focus toward developing artificial intelligence-driven solutions. To aid in this transition, Sprinklr has appointed two new board directors, Jan Hauser and Stephen Ward. Meanwhile, Ed Gillis, a current board member and audit committee chair, will be stepping down at the end of March.
In addressing the affected employees, Sprinklr expressed its commitment to supporting them during this transition.
"We will support departing teammates with the greatest care and respect, acknowledging their contributions to Sprinklr, and assisting them in their transition," a company spokesperson stated.
Additionally, the company emphasized its intent to realign resources and investments to enhance service delivery.
"We will refocus and rebalance our investments, talent, and resources in order to better serve our customers and partners and help them realize the full value of our AI-powered platform," the spokesperson added.
Despite these changes, the layoffs do not impact any C-level positions within the organization. This restructuring mirrors a broader trend across the industry, as companies like Workday, Okta, Sonos, and Cruise have also announced similar job cuts recently.
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