Thoughtworks has become the latest technology company to join the current trend of laying off employees amid the global economic slowdown.
The software consulting firm laid off around four percent of its global workforce, roughly 500 employees, a figure the company did not dispute when asked for comment on Wednesday. TechCrunch has learned that the company initially informed its affected employees of the decision on Tuesday and the layoffs will continue for days to come.
“We confirm that we have made the difficult decision to reduce our workforce by approximately four percent globally,” Thoughtworks director of global public relations Linda Horiuchi said in an emailed statement to TechCrunch. “We do not take this decision lightly and are sorry to say goodbye to some talented and passionate thought workers. These changes were necessary to support the future growth of our business.”
Thoughtsworks has more than 12,500 employees in 18 countries on five continents, including the United States, Latin America, Europe, Asia and Australia. The company also has a strong presence in India, although the spokesperson confirmed to TechCrunch that the move did not include layoffs in the country.
Earlier this week, Thoughtsworks reported an 8.3% year-over-year increase in quarterly revenue compared to the same period last year, totaling more than $310 million. This revenue growth also contributed to the company’s net income of $16.1 million in the fourth quarter, an improvement from its loss of nearly $17 million in the same quarter last year.
The Chicago-based company also forecast revenue of between $303 million and $305 million in the current quarter and anticipated year-over-year revenue growth of between 0.5% and 2.5% for the year overall.
On Wednesday, Thoughtsworks was trading at $7.34 per share with a market capitalization of $2.29 billion.
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