Sprinklr Lays Off 15% of Workforce Amid Business Performance Issues

Sprinklr, a U.S.-based customer experience management platform provider to global brands, has announced significant layoffs, affecting approximately 500 employees, or around 15% of its workforce. This move comes less than a year after the company reduced its workforce by about 3% in May and earlier cut its headcount by 4% in 2023, impacting roughly 200 employees.

Recent Layoffs and Restructuring Efforts

The New York-headquartered company, which counts Microsoft, P&G, and Samsung among its over 1,800 global customers, started notifying affected employees about the cuts this week. According to a statement from Sprinklr, the company will refocus and rebalance its investments, talent, and resources to better serve its customers and partners and help them realize the full value of its AI-powered platform.

Impact on C-Level Positions and Hiring Plans

The spokesperson confirmed that the move does not impact C-level positions. However, the company will continue to hire in prioritized areas to focus on its strategic priorities. This decision is part of Sprinklr’s shifting focus toward developing AI-led experiences, as evident from the recent appointments of former PwC partner Jan Hauser and former Lenovo CEO and C3.ai founding member Stephen Ward as new board directors.

Company Background and Recent Developments

Per its most recent annual report released in March of last year, Sprinklr had 3,869 employees, including 2,276 in India and 787 in the U.S. The company has been undergoing significant changes in recent times, including the appointment of new board directors and the departure of current board member and audit committee chair, Ed Gillis, who is stepping down from his position at the end of March.

Support for Departing Employees

Sprinklr has expressed its commitment to supporting departing teammates with the greatest care and respect, acknowledging their contributions to the company and assisting them in their transition. This move is part of the company’s efforts to refocus and rebalance its investments, talent, and resources to better serve its customers and partners.

Industry Trends and Recent Layoffs

Sprinklr’s layoffs are not an isolated incident, as several other companies, including Workday, Okta, Sonos, and Cruise, have also announced job cuts in recent days as businesses face challenges amid dynamic shifts. These companies are among those facing challenges in the current market, highlighting the need for adaptability and strategic planning in the face of uncertainty.