Dozens laid off after Totango and Catalyst merge
Dozens laid off after Totango and Catalyst merge
One week after the Israeli and American companies announced they would merge, they are initiating significant cutbacks due to an “overlap in roles and functions”
One week after announcing a merger, dozens of employees at Israeli company Totango, which develops customer management systems, and American company Catalyst, are being laid off. The companies explained that the cutbacks were necessary due to an overlap in roles created by the merger. The merger was completed through an exchange of shares between the two companies, with Totango being the larger of the two.
Before the merger, Totango employed over 100 employees. Established in 2011, Totango counts companies such as Google, SAP, SentinelOne, WalkMe, and Zoom among its clients. Founder Guy Nirpaz left the company in the past year.
The combined organization, backed by Great Hill Partners, will be led by co-CEOs Alistair Rennie and Edward Chiu, prior CEOs of Totango and Catalyst. The unified offering aims to provide a complete solution for managing the entire customer lifecycle so businesses can drive more revenue from the customer base. In 2021, Totango raised $100 million led by the American growth fund Great Hill Partners, which gained control of the company.
In a statement, the company explained, "As recently announced, Totango has merged with Catalyst. With any merger of this scale, there is typically an overlap in roles and functions. We have made the difficult decision to downsize our workforce in both the U.S. and Israel. All affected employees have received compensation. Together, Totango and Catalyst are better equipped to provide value to the company's customers than any other company in the space. We remain committed to our Israeli team and its contribution to our organization."
