Tech Firm F5 Cuts 620 Jobs, Office Spending and Executive Bonus

F5, the global technology and software company based in Seattle, is downsizing its workforce by 9%. The employer joins a growing number of tech firms that are laying off tens of thousands of workers in response to slowing demand and sales.

What’s happening: In a press release, F5’s President and CEO François Locoh-Donou outlined a number of cost-cutting measures, saying that “given the current demand environment… we are taking action to reduce our operating costs.”

• Global headcount is being reduced by 620 employees by April 21, 2023
• Layoffs will result in $45 million in severance payments
• Office and travel spending will be slashed
• Corporate and executive bonus will be cut

Further explanation: Locoh-Donou sent an email to staff Wednesday, explaining that “it’s clear that rising interest rates, geopolitical events and macroeconomic uncertainty have dramatically affected our customers’ spending patterns… we must take measures to decrease our costs.”

• Given the persistent macro uncertainty and its impact on customer spending, we now expect low-to-mid single-digit revenue growth in fiscal year 2023.

Impact on Canadian staff

The layoffs at F5 will impact employees across the globe, though the exact number of Canadian employees affected remains unclear.

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