Outreach, a sales engagement company founded in 2014, recently announced that it is laying off 9% of its staff, impacting more than 65 employees globally, mainly in go-to-market roles. This move is part of a cost-cutting effort by the company, which has undergone multiple rounds of layoffs in recent years, including a 12% cut in September 2023. Despite these layoffs, Outreach is not closing any of its offices and is offering impacted employees severance, benefits, and career counseling. The company currently has 680 employees and serves more than 6,000 customers, including well-known companies such as Zoom, Twilio, and McKesson.
The tech industry as a whole has experienced a significant number of layoffs in recent years, with more than 260,000 tech employees being laid off in 2022 and over 143,000 being cut so far in 2023. This trend can be attributed to higher interest rates and more cautious spending among companies. In the sales automation sector, the impact of generative AI is a major topic of discussion, with companies like Outreach competing with others such as Salesloft, Apollo, and Clari. Additionally, tech giants like Microsoft and Salesforce offer their own products aimed at streamlining and automating sales processes.
Outreach has raised nearly $500 million and reached a $4.4 billion valuation 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 and was replaced by Abhijit Mitra, who joined the company last year as its president of product and technology. With its focus on helping companies improve their seller workflows and win more deals, Outreach continues to be a major player in the sales automation market, despite the recent rounds of layoffs.
The layoffs at Outreach come amid a challenging environment for the tech industry, with many companies facing increased pressure to cut costs and streamline operations. Despite the layoffs, Outreach remains committed to its goal of providing innovative solutions to help companies enhance their sales processes. The company’s decision to offer impacted employees severance, benefits, and career counseling demonstrates its commitment to supporting its staff during this difficult time.
As Outreach works to navigate the changing landscape of the tech industry, it faces stiff competition from other sales engagement companies as well as major tech giants offering similar products. The rise of generative AI in sales automation is also shaping the industry and influencing how companies approach their sales processes. By focusing on innovation and providing value to its customers, Outreach has positioned itself as a leader in the sales automation market and continues to adapt to meet the evolving needs of its clients.
Overall, the layoffs at Outreach reflect broader trends in the tech industry, with companies being forced to make tough decisions in response to changing market conditions. Despite these challenges, Outreach remains a key player in the sales automation sector, thanks to its focus on providing cutting-edge solutions to help companies drive sales and achieve their business goals. With a strong leadership team in place and a commitment to supporting its employees, Outreach is well-positioned to continue its growth and success in the years to come.
