Pendo, a software startup based in Raleigh, North Carolina, has announced a reduction in its workforce. The company, which provides analytics software, is one of the few in the area to reach a valuation exceeding $1 billion. The layoffs come as Pendo reorganizes to adapt to changes in the technology landscape.
What happened
Pendo laid off employees as part of a company reorganization, which CEO Todd Olson referred to as "refounding" Pendo. The company is adapting to changes in the technology landscape and investing in its own AI tools.
How many employees affected
The layoffs impacted 90 positions, representing approximately 10% of Pendo's total workforce. Of those, 30 were based at the company's Raleigh headquarters.
Why layoffs happened
According to CEO Todd Olson, the layoffs are not due to the company's financial performance but are a strategic move to reorganize and meet the evolving needs of companies in a changing technology landscape. The company has invested heavily in AI tools.
Company background
Pendo is an analytics software company that helps businesses understand how customers interact with their websites, apps, and services. Valued at $2.6 billion in 2021, Pendo's clients include major corporations like Morgan Stanley, United Airlines, and Salesforce. In 2023, Pendo laid off around 12% of its workforce.
Industry impact
Pendo joins a growing list of tech companies that have recently implemented layoffs. These companies are responding to the changing technology landscape, including the rise of AI, and are looking to streamline operations and strengthen their budgets.
What's next
Pendo will continue its focus on developing AI tools and adapting to the evolving needs of its clients. The company has no immediate plans to go public.