F5 Tower in downtown Seattle has confirmed that it has made job cuts impacting roles across various teams within the company after the completion of its fiscal year. The reduction amounts to less than 2% of the global workforce, impacting over 100 positions out of the approximately 6,500 employees. These changes are part of a broader effort to align resources to the company’s highest priority areas and meet the evolving needs of customers and the business. The fiscal year ended in September, with the company reporting quarterly revenue of $747 million, up 6% year-over-year, and a net income of $165 million, up more than 8% year-over-year.
While F5 has been growing its overall headcount, it has a history of making similar layoffs following its annual review of business and operations. Previous examples of layoffs occurred in November 2023, October 2022, fall 2021, and fall 2019. The CEO, François Locoh-Donou, paused layoffs in 2020 during the height of the pandemic. More recently, F5 laid off a smaller number of employees working on marketing-related content production, stating a shift towards relying more heavily on agencies for creative and content needs. Details about the most recent round of layoffs were not provided, but it impacted teams in areas such as technology services, sales, customer support, and process management.
The challenging tech job market has led to many individuals in the industry spending months searching for work, making layoffs even more impactful. F5’s board authorized an additional $1 billion for its common stock repurchase program as the company’s stock has risen more than 20% this year. In addition, F5 appointed Cooper Werner as its new Chief Financial Officer and Executive Vice President, replacing Frank Pelzer who is retiring. The company did not offer further information on the recent job cuts, but employee posts on LinkedIn and messages to news outlets indicated that various teams were affected.
Overall, the layoffs at F5 are part of the company’s strategy to realign resources towards key priorities and adapt to changing customer needs and business dynamics. While the precise details of the job cuts were not disclosed, it is known that employees in different departments, including technology services, sales, customer support, and process management, were impacted. F5 has a history of making similar workforce reductions following annual reviews, with previous examples dating back several years. The CEO’s decision to pause layoffs in 2020 during the pandemic highlights the company’s commitment to supporting employees during challenging times.
Despite the layoffs, F5 reported positive financial results with increased revenue and net income year-over-year. The authorization of additional funds for stock repurchase indicates confidence in the company’s growth and market performance. The appointment of Cooper Werner as the new CFO reflects internal restructuring within F5 as the company looks to navigate industry challenges and opportunities. The job cuts in marketing-related roles signify a shift in the company’s marketing strategy towards utilizing external agencies for creative and content needs. Overall, the layoffs at F5 are part of a broader effort to streamline operations, enhance efficiency, and position the company for continued success in a competitive market.
