Outreach, a sales engagement company founded in 2014, has recently announced layoffs that affected more than 65 employees globally. The layoffs, which represent 9% of the company’s workforce, mainly impacted go-to-market roles. This move is part of a series of cost-cutting measures the company has undertaken in recent years, including a 12% cut in September 2023. Despite the layoffs, Outreach is not closing any offices and is offering impacted employees severance, benefits, and career counseling. The company now has a total of 680 employees.
The tech industry has experienced a high number of layoffs in 2022 and 2023, with more than 260,000 tech employees losing their jobs last year and over 143,000 cut so far this year. This trend has been attributed to higher interest rates and more cautious spending among companies. As a result, many tech companies have had to make difficult decisions to reduce costs. Outreach, with more than 6,000 customers including Zoom, Twilio, and McKesson, is facing similar challenges as it competes with other sales engagement companies such as Salesloft, Apollo, and Clari.
One of the topics impacting the sales automation sector is the rise of generative AI. This technology has the potential to revolutionize sales processes by streamlining and automating tasks. Companies like Outreach are investing in AI to improve their seller workflows and help businesses win more deals. Outreach has raised nearly $500 million in funding and reached a valuation of $4.4 billion after raising $200 million in 2021. The company is ranked No. 1 on the GeekWire 200 list of privately-held tech companies in the Pacific Northwest.
In September, Outreach co-founder and former CEO Manny Medina stepped down from his role. Abhijit Mitra, who joined the company last year as its president of product and technology, was appointed as the new CEO. Mitra will be leading Outreach as it navigates through the challenges of the current market conditions, including layoffs and cost-cutting measures. Despite these challenges, Outreach remains focused on helping companies improve their sales processes and achieve their business goals. The company is dedicated to supporting its employees through the transition and ensuring that they have access to the necessary resources for their career development.
