Informatica cutting 10% of staff, reducing global real estate footprint

After reporting solid third quarter results, Informatica is scaling back its staffing levels.

In its Q3 2023 earnings release, the software company said it plans to eliminate approximately 545 jobs, or 10 per cent of its workforce, and reduce its global real estate footprint.

“In January, we transitioned to a cloud-only, consumption-driven strategy, which is the final leg of our multi-year plan to drive profitable growth,” CEO Amit Walia said in the release.

“Our next phase of growth allows us to further streamline our global cost structure without reducing our growth expectations. We intend to finish our transition to a cloud-only business model while maintaining sales capacity, best-in-class product innovation, and customer satisfaction.”

It remains unclear if the cuts will affect Canadian workers at Informatica.

The company employs a total workforce of more than 5,000 people, according to its corporate fact sheet.

Major tech layoffs continue

The reduction at Informatica comes amid a flurry of tech sector layoffs in 2023.

Big names, including Ubisoft, Bungie, Splunk, Nokia, LinkedIn, Amazon, Twitch, Google, and Dell, have announced deep job cuts as they continue to navigate challenging economic conditions.

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Termination agreements for Informatica employees

As part of the layoff announcement, Informatica said it expects to incur “non-recurring charges of approximately $35 million to $45 million” in connection with its restructuring plan — primarily related to severance payments, employee benefits, real estate-related charges, and other costs.

In Canada, non-unionized employees at the software company are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

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

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

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

LEARN MORE
• Severance packages for tech sector workers
• Rights to 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.

In some cases, employers pressure staff into accepting poor severance packages, such as imposing a deadline for accepting the offer.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue a claim for full severance pay.