Akamai Technologies cutting 3% of staff as part of restructuring

Hundreds of jobs are on the chopping block at Akamai Technologies (Akamai) as the internet services company restructures its business.

According to news outlets, including The Boston Globe, Akamai is planning to cut approximately 300 jobs, or three per cent of its global workforce.

“This was a difficult decision, but it was necessary for us to prioritize investments in the areas with the greatest potential for future growth as we strive to deliver greater value for shareholders,” CEO Tom Leighton told analysts after the company released its Q1 2023 financial results on May 9.

In its earnings release, Akamai noted that it recorded a $45-million restructuring charge in the quarter — primarily related to “severance costs.”

The company’s LinkedIn page claims that it employs a global workforce of more than 9,100 people. Over 130 staff members are located in Canada.

Impact on Canadian staff

Akamai didn’t disclose how many Canadian employees are affected by the latest round of cuts.

The company has a significant presence in Canada, with offices in Toronto, Ottawa, and Vancouver.

Tech layoffs continue

Akamai joins the growing list of North American tech companies that have announced sweeping layoffs in 2023.

Several big names, including Shopify, Unity Software, Dropbox, Lyft, Meta, Amazon, Alphabet, and Clearco, are significantly scaling back their staffing levels as they continue to navigate challenging economic conditions.

SEE ALSO
• LinkedIn slashing 716 jobs, shutting down China-focused app
• Employment lawyer on recent tech layoffs and severance
• Layoffs in Canada

Termination agreements for staff at Akamai Technologies

In Canada, non-unionized employees at Akamai Technologies are owed full severance pay when they lose their jobs due to downsizing or corporate restructuring.

This includes individuals working full-time, part-time, and hourly in Ontario or B.C.

Severance can be as much as 24 months’ pay, depending on a number of factors.

LEARN MORE
• Severance for technology industry employees
• Severance for provincially regulated employees
• Severance packages in mass layoffs

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper severance if it falls short of what you are actually owed.

If you don’t receive the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.