Elastic – Bay Area-based search solutions company is laying off approximately 13% of its overall workforce amid restructuring, announced as part of the company’s earnings call on Nov 30.
The total number of employees impacted by the layoffs hasn’t been made public yet – though we hear from first-hand accounts on LinkedIn that the total number is approximately around 13% ~ 450 employees (based on the company’s total headcount as per the official LinkedIn page & as reported by ).
Overall the company posted a better than expected earnings and revenue –
Earnings – Expected -0.10 / Reported 0.00 / Surprise 100.00%
Revenue – Expected $261.64M / Reported 264.40M / Surprise 1.05%
“The Company today also announced a selective reduction in its workforce and facilities-related cost optimization actions to align its investments more closely with its strategic priorities” taken from the company’s earnings statement.
In the earning statement, CEO – Ashutosh Kulkarni did mention “We are rebalancing investments across all functions and will strategically reinvest some savings in areas that best position us to drive profitable growth. With these changes, we expect to accelerate our non-GAAP operating income growth in the second half of fiscal 2023 and achieve a non-GAAP operating margin of 10% in fiscal 2024,”