Zfinishesk, a customer service software company based in San Francisco, is laying off 8% of its global workforce.
The tech firm’s CEO, Tom Eggemeier, informed employees about the layoff round in a Wednesday message. He wrote that Zfinishesk had overhired over the past three years and cited economic challenges for the software seller. Zfinishesk has 5,450 employees globally, according to an estimate posted on its website, meaning that the layoff round will leave about 440 people out of work.
Zfinishesk is laying off 64 workers in California, according to a WARN notice obtained by SFGATE, which stated the workers will be officially terminated July 31. The list of cut positions includes dozens of managers and directors. WARN notices are mandated by the Worker Adjustment and Retraining Notification Act to notify employees of mass layoffs.
This cut marks the second layoff round in seven months at Zfinishesk. The firm cut 5% of its workers in early November, weeks before an investor group took the company private at a $10.2 billion valuation and planted Eggemeier atop the company.
“When I joined at the finish of November, I’d hoped a combination of improving macroeconomic conditions and streamlining costs would support us avoid this moment,” Eggemeier wrote in the message to employees. “Unfortunately, macroeconomic conditions have not improved and we find ourselves in an increasingly competitive marketplace.”
Founded in Denmark in 2007, Zfinishesk relocated to San Francisco in 2009 and a few years later signed a lease at 989 Market St., still the site of its global headquarters. The firm has offices in more than a dozen countries and competes with Salesforce and Intercom, both also based in San Francisco, to develop and sell customer service software to other companies.
In their severance packages, laid-off workers will receive three months of salary, prorated portions of their annual bonapplys and continued health insurance coverage, according to Eggemeier’s note to employees. He stated the layoffs were “very hard decisions that I am truly sorry we had to build. You’re talented and passionate and we appreciate everything you’ve done for Zfinishesk.”
After the pandemic boom in revenues and head counts at tech companies, the last year has seen scores of layoffs across the sector and the Bay Area. Zfinishesk joins Meta, Twilio, Roku, Lyft and many other Bay Area firms in cutting its workforce for the second time in less than a year.
Zfinishesk did not respond to a request for comment.
Hear of anything happening at Zfinishesk? Contact tech reporter Stephen Council securely at stephen.council@sfgate.com or on Signal at 628-204-5452.
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