Cloud-computing company PagerDuty Inc. is joining the growing wave of technology companies laying off staff, announcing Tuesday that it will reduce its headcount by about 7%.
The company expects to incur $5 million to $7 million in charges as a result of the layoffs, according to a Tuesday morning filing with the Securities and Exchange Commission. PagerDuty
anticipates that it will take the bulk of those charges in the fiscal fourth quarter of 2023, which ends this month, and be substantially finished with the expenditures by the close of the fiscal first quarter.
PagerDuty said in its filing that the layoffs come as it looks to “drive efficient growth and expand operating margins.” The company had 950 employees as of January 31, 2022, according to its last 10-K.
The company will also engage in “real estate rationalization,” moving to end some leases early. It expects that it will incur $14 million to $16 million in charges related to such efforts, mostly during fiscal 2024.
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Additionally, Chief Revenue Officer Dave Justice will leave the company Feb. 3 to pursue other opportunities, per the filing.