Thoughtworks has become the latest technology company to join the current trend of laying off employees amid the global economic downturn.
The software consultancy has laid off around 4% of its global workforce – around 500 employees – a figure the company did not dispute when contacted for comment on Wednesday. TechCrunch has learned that the company initially informed its affected employees of the decision on Tuesday and that the layoffs will continue in the coming days.
“We confirm that we have made the difficult decision to reduce our workforce by approximately 4% globally,” said Linda Horiuchi, global PR manager for Thoughtworks, in a statement emailed to TechCrunch. “We did not make this decision lightly and regret having had to say goodbye to talented and passionate thought workers. These changes were necessary to support the future growth of our business.
Thoughtworks 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 this decision did not include any layoffs in the country.
Earlier this week, Thoughtworks reported an 8.3% year-over-year increase in quarterly revenue over the same period last year, totaling more than $310 million. That revenue growth also contributed to the company’s net profit of $16.1 million in the fourth quarter, an improvement from its loss of nearly $17 million in the same quarter a year ago.
The Chicago-based company also expects to generate revenue between $303 million and $305 million in the current quarter and expects year-over-year revenue growth of between 0.5% and 2.5% for the whole year.
On Wednesday, Thoughtworks was trading at $7.34 per share with a market cap of $2.29 billion.