WalkMe lays off 43 employees, 3% of workforce
WalkMe lays off 43 employees, 3% of workforce
The software company, which went public on Nasdaq at a $2.5 billion valuation in June 2021, said it is cutting jobs as part of its strategic focus on enterprises
Software company WalkMe is laying off 3% of its workforce, accounting for 43 employees. Most of those being laid off focus on the SMB sector after WalkMe decided to reduce its activity with small and medium-sized businesses and double down on organizations that employ over 500 people.
WalkMe went public on Nasdaq at a $2.5 billion valuation in June 2021, raising $286 million. The company currently has a market cap of around $830 million. It still has over $320 million in cash in its accounts but decided to cut its team in order to reduce its cash burn rate in the hope of becoming profitable in 2023. The cutback program is expected to save WalkMe around $6-7 million a year.
WalkMe was founded in 2011 by Rafael Sweary and Dan Adika. The company also announced that Sweary will be taking a step back and no longer serve as president of the company and will only remain a board member and and advisor to Adika. In addition, Adika will continue to serve as CEO, but will no longer also hold the role of chairperson, a role which has now been given to Michele Bettencourt.
WalkMe has developed a platform for adopting digital technologies without the need to write additional code. The concept behind WalkMe’s solution is to help organizations measure, promote and act in order to maximize the impact of digital transformation processes, thereby improving the efficiency of the software the organization uses. WalkMe's products are used by both the companies' employees and their clients.
“Out of responsibility, due to the situation in the market and in order to maintain a positive cash flow situation, the company decided to strategically focus on its enterprise clients, who will receive the best value from the Digital Adoption Platform,” the company said in a statement. “As part of this move, alongside recruiting for roles that support the company’s business focus, 43 roles that aren’t such will be cut from the global workforce, including six in Israel. This is a difficult but necessary decision. The company is sadly parting ways with wonderful people and is thankful for their contributions to its development and growth.”
