Seattle-based recruitment software provider, SeekOut is preparing for further layoffs, marking a second workforce reduction in less than a year. The imminent redundancy cycle is a result of an economic downturn affecting the recruitment sector and the company’s revenue streams.
The impending layoffs are seen as necessary to balance expenses and stabilize the company’s financial position. Despite the job cuts, SeekOut intends to continue serving its customers with quality recruitment software solutions whilst navigating these challenging times.
While the exact numbers of impacted workers remain unknown, those affected will receive severance pay and job transition services.
SeekOut prepares for additional layoffs
The company justifies this strategy as a necessary step to strengthen its financial position and their competitiveness in the talent acquisition market.
In a similar layoff round last October, about 7% of the workforce was absorbed, approximating to around 200 staff member losses. It’s important to note, however, that SeekOut, founded in 2017, still enjoys a client base of over 1,000 businesses, all of whom benefit from its innovative recruitment software.
Despite previously achieving a $1.2 billion valuation in 2022, and even tripling their annual recurring revenue over nine months in the same year, a tech downturn caused a demand dip for SeekOut’s products. This resulted in a decline in the company’s growth trajectory and a pullback in its revenue generation.
Other online job platforms, including Indeed, are also experiencing layoffs amid a worldwide hiring deceleration. As of now, close to 300 tech companies have laid off over 84,000 employees this year, reflecting a similar trend from last year resulting from a tighter venture capital market and rising interest rates.
Helmed by a CEO with a strong tech background and co-founders from Microsoft, SeekOut is backed by funding from high-profile firms such as Tiger Global, Madrona, and Mayfield.
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