Hyland, a content services and software solutions company, has announced a significant restructuring effort that will result in the layoff of approximately 1,000 employees. The layoffs represent approximately 20% of Hyland’s total workforce and are part of a larger restructuring plan aimed at making the company more efficient and effective.
The announcement was made by Hyland’s CEO, Bill Priemer, who acknowledged the difficulty of the decision and the impact it will have on those affected. Priemer stated that the restructuring effort will involve removing layers of management, adjusting team sizes, and reassigning responsibilities across departments and levels.
Employees based in the US will receive an email notification outlining their status and next steps within minutes of the announcement. Those who will be leaving the company will receive a notification email that includes an invitation to a Zoom webinar to explain the offboarding process, including information about severance, healthcare coverage, and outplacement services. The process will take longer outside the US due to local laws and practices.
Hyland has been navigating the global economic situation and shifts in its market, with a focus on transforming into a cloud company. The effort has required substantial investment in both people and systems. However, inflation, rising interest rates, and wage increases have impacted the company’s expenses more than anticipated. Additionally, the challenging economic climate has prompted many organizations to pull back on their technology expenditures.
After much deliberation with the board and senior executive team, and despite enacting significant cost-cutting measures such as hiring freezes, travel restrictions, and reductions in discretionary spending, the company determined that streamlining the organization, both operationally and financially, is necessary to ensure Hyland’s long-term success.
The new organizational structure will make Hyland more effective at developing, delivering, and supporting cloud-based solutions and enable the company to respond more quickly to the needs of its customers and partners. The leadership level will see layers of management removed to improve communication and accelerate decision-making. The number of direct reports for most leaders will increase to provide individual contributors with greater access to management and provide leaders with greater visibility into what’s happening at the field level. At the individual contributor level, team sizes will be adjusted, and personnel will be reassigned to achieve the optimal mix of skill sets within every function.
To those who will be leaving the company, Priemer expressed gratitude for their contributions and assured them that Hyland will do what it can to help ease the transition. Those in the US will receive a minimum of three months of severance (more for extended tenure), a minimum of five months of healthcare coverage, continued access to Hyland’s employee assistance program, and career resources to help them find their next opportunity.
For those staying, Priemer acknowledged the difficulty of the change and the many questions they will have. Hyland will support employees through the process and provide resources to help them navigate the new organizational structure, their role within it, and new ways of working together.
Hyland’s CEO closed the announcement by expressing confidence in the path ahead and assuring employees that the future remains bright for Hyland. The company will provide more detail and answer as many questions as possible at an all-hands meeting taking place on April 6.
