In a clear sign of the layoff trend that is being witnessed across the globe, big data analytics software company Sumo Logic has reportedly laid off 79 employees, as job cuts continue in the tech industry worldwide. The company’s CEO Joe Kim announced the job cuts in an email to staff.
The layoffs at Sumo Logic occurred less than a month after the global investment firm Francisco Partners acquired the company for $1.7 billion, news agency IANS reported citing a report from The Information.
“He said one group of workers would receive an email telling them their roles had been cut, while another group would receive an email saying their roles were safe," the report noted.
According to its most recent annual filing, Sumo Logic employed 983 people.
Reportedly, anonymous Sumo Logic employees posted on online company review site Blind that laid off employees “had received two months of pay but no other benefits".
Sumo Logic, the SaaS analytics platform to enable reliable and secure cloud-native applications, in May announced that Francisco Partners completed its acquisition of the company.
The all-cash transaction valued Sumo Logic at an aggregate equity valuation of approximately $1.7 billion, IANS reported.
Under the terms of the agreement, Sumo Logic stockholders received $12.05 per share in cash. This represents a premium of approximately 57%.
Recently, ZoomInfo, a US-based marketing technology company, announced plans to reduce its global workforce by around 3%. The company in a filing with the US Securities and Exchange Commission (SEC), stated its employees about its intentions to streamline the organisational structure, expedite decision-making, and allocate resources to strategic growth opportunities while maintaining profitability.