Sprinklr, a leading customer experience management platform provider for global brands, has recently made the decision to lay off approximately 3% of its workforce, which amounts to around 116 employees. This move is part of the company’s efforts to realign its customer operations team and streamline its business operations. Notably, this is not the first time Sprinklr has implemented job cuts, as it had previously reduced its headcount by about 4% in February of last year.
Sprinklr, headquartered in New York, boasts an impressive client roster that includes Microsoft, Samsung, P&G, and more than 60% of Fortune 100 companies worldwide. The affected employees were informed about the decision on Thursday, with notifications sent to individuals in various markets such as the United States and India.
In an email response to TechCrunch’s inquiry, a spokesperson from Sprinklr explained the rationale behind the job cuts: “Sprinklr made the strategic business decision to realign our headcount across our customer operations organization. While these decisions are hard to make, they reflect the commitments we’ve outlined to restructure our business to accelerate our go-to-market efficiencies and better serve customers.” It is worth noting that the layoffs did not impact any C-level roles within the company.
Although the exact number of employees affected was not disclosed by Sprinklr, their recent 10K filing indicated that they had a total of 3,869 employees worldwide as of January 31. The filing further revealed that Sprinklr had 2,276 employees in India, 787 in the United States, and 3,082 internationally. To ensure compliance with local labor laws, the spokesperson assured that the restructuring process would be carried out accordingly.
Despite these layoffs, Sprinklr has demonstrated positive financial performance. In March, the company reported a 17% increase in quarterly revenue for Q4 compared to the previous year, reaching $194.2 million. Additionally, Sprinklr achieved GAAP operating income of $18.5 million, a significant improvement compared to an operating loss of $1.8 million in the same period the previous year.
Addressing concerns about the impact on employees, the spokesperson emphasized that while the company will continue to hire in key areas to support growth, their primary focus is on supporting the affected employees during this transition. They stated, “Our first priority is to support employees with the greatest care and respect, show appreciation for their contributions to Sprinklr, and to assist them in their transition. We will then continue our focus on strengthening our foundation, fostering innovation, and enhancing our execution to drive value for our customers and shareholders.”
As of Friday, Sprinklr’s shares were trading at $12.10 per share, with a market capitalization of $3.30 billion.
Overall, Sprinklr’s decision to realign its customer operations team through job cuts demonstrates the company’s commitment to optimizing its resources and improving its go-to-market efficiency. While these layoffs may be challenging for the affected employees, Sprinklr aims to support them and continue driving value for its customers and shareholders.
