German HRtech firm Personio has confirmed a round of layoffs that will see approximately 100 individuals departing the company effective immediately.
The company, which achieved unicorn status in early 2021 and employs roughly 1,800, said that the approximately 5 per cent reduction in its workforce was limited solely to its Product & Technology (PTech) department and is the result of a decision to increase the level of specialist skills, functional depth and experience within the business unit.
The company currently has 150+ open roles within its Product & Technology division.
In a statement provided to Tech.eu, Personio Chief Product and Technology Officer Maria Angelidou-Smith explained:
“This was a deeply difficult decision and is one that took a lot of time to contemplate, but is crucial to continuing our strong position in the market and delivering on our exciting product roadmap.
“We want to do everything we can to support our colleagues going through this process. Those affected are being offered a generous severance package, job market support and career coaching amongst other initiatives.
“Their skills will be highly valuable to other organisations following the same path as us, and we would encourage those on the lookout for talented engineers and builders to reach out.”
Founded in 2015, Personio is backed by the likes of Northzone, Accel, Index Ventures, Global Capital Founders, and Lightspeed Venture Partners, and has raised approximately $725 million in total. The company's most recent Greenoaks Capital-led Series E funding round of $470 million saw the company achieve a valuation of $8.5 billion.
However, Personio is not yet profitable, and company representatives were adamant that the recent layoffs were in no way a demonstration of cost-cutting measures.
Lead image via Personio. Photo: Uncredited.