Zendesk is the latest in a string of tech companies with international headquarters in Ireland to announce job losses.
Zendesk, the customer service software company that has a major base in Dublin, will be cutting almost 5pc of its staff worldwide.
The reduction in staff, which amounts to about 300 employees, was approved by the company’s board of directors last Thursday (3 November).
In a filing with the US Securities and Exchange Commission, the company said the staff cuts were based on “cost-reduction initiatives intended to reduce operating expenses and sharpen Zendesk’s focus on key growth priorities”.
The reduction in force will cost Zendesk about $28m in severance payments, employee benefits and other related costs.
Headquartered in San Francisco, Zendesk opened its $10m EMEA headquarters in Dublin in 2018, representing its largest investment in property outside of the US.
Today, the company employs about 600 people in Dublin and the Irish Independent reports that staff there have already been informed of cuts.
Earlier this year, Zendesk agreed to a $10.2bn acquisition led by global investment firms Permira and Hellman & Friedman. The all-cash transaction, expected to close this quarter, will turn Zendesk into a private company once again.
The layoffs at Zendesk follow a spate of similar announcements from tech companies with operations in Ireland, including Meta, Stripe, Twitter, Salesforce, Shopify, Patreon, Intercom and Twilio. Chipmaker Intel is also expected to announce job losses.
With many Irish workers affected by these job cuts, Tánaiste Leo Varadkar has attempted to reassure tech professionals here that there is no sign of any companies planning to fully close their Irish operations.
Following a meeting between IDA Ireland and Enterprise Ireland earlier this week, Varadkar said that those who had lost their jobs as a result of these mass cuts would be assisted “as they seek alternative employment or other opportunities”.
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