Highspot, a Seattle-based sales software company, announced today that it will be laying off 140 employees, or 15% of its workforce. This is the second round of layoffs for Highspot in 2023, following a 10% cut in February.
In a statement, Highspot CEO Robert Wahbe said the layoffs were necessary to “accelerate the company’s path to profitability.” He added that the company is “well capitalized” and expects to be cash flow positive next year.
The layoffs come amid a broader slowdown in the tech industry. Thousands of tech companies have slashed headcount in recent months, as investors become more cautious about the future of the sector.
Highspot is a leading provider of sales enablement software. Its platform helps sales teams create and deliver personalized content to their prospects. The company’s customers include some of the world’s largest companies, such as DocuSign, Workday, and Siemens.
The layoffs are a setback for Highspot, which was one of the fastest-growing tech companies in the Pacific Northwest. The company raised $250 million in funding last year at a valuation of $3.5 billion.
It remains to be seen how the layoffs will impact Highspot’s business. The company has said that it will continue to invest in its product and engineering teams. However, the layoffs will likely make it more difficult for Highspot to compete with larger rivals such as Salesforce and Oracle.
The February layoffs were the first time Highspot had laid off employees since its founding in 2011. The company had previously been on a rapid growth trajectory, raising over $650 million in funding and reaching a valuation of $3.5 billion. However, the company’s growth has slowed in recent months, as the tech industry has faced a number of challenges, including a slowdown in venture capital funding and a rising interest rate environment.
The February layoffs were a sign that Highspot is facing some challenges as it transitions from a high-growth startup to a mature company. However, the company has said that it is committed to its long-term growth strategy and that it expects to be profitable in the next year.