Jamf to Reduce Workforce by 6%
Layoffs in the tech industry have dominated the headlines in recent weeks. A fresh round of job cuts now hits close to home at Minneapolis-based Jamf.
On Thursday, the maker of Apple device management software said it plans to lay off roughly 170 workers, or about 6% of its total workforce. In a filing with the U.S. Securities and Exchange Commission, Jamf said the cuts are needed to “reduce operating costs, improve operating margins, and continue advancing the company’s ongoing commitment to profitable growth.”
As of Dec. 31, 2022, Jamf employed nearly 3,000 employees in total, with 1,736 based in the United States and the remaining 1,060 working outside the country, according to Jamf’s most recent annual filing.
Jamf expects to spend between $6.6 million and $8.2 million on severance payments, employee benefits, and other related costs for the laid off workers. The company said it expects the workforce reduction to be “substantially complete” by 2024’s second quarter.
The layoffs come after Jamf reported three consecutive net losses in the first three quarters of 2023. In its third quarter that ended Sept. 30, the company reported a net loss of over $32 million. The tech company is slated to report its fourth quarter and year-end results on Feb. 27.
Jamf has been logging net losses even as it reported year-over-year increases in revenue in the first three quarters of 2023.
On paper, Jamf has assembled an impressive list of customers. As of year-end 2022, the company said it had more than 71,000 customers across more than 100 companies. Its customer base includes nine of the 10 largest Fortune 500 companies and the 15 largest U.S. banks determined by bankrate.com.
Still, in its latest annual report from March, Jamf warned that reductions in IT spending could reduce demand for its products. At the time, the company listed record levels of inflation, elevated interest rates, and supply chain challenges among potential risks to growth.
“These factors could result in reductions in IT spending by our existing and prospective customers, customers delaying or canceling IT projects, choosing to focus on in-house development efforts, or seeking to lower their costs by requesting us to renegotiate existing contracts on less advantageous terms or defaulting on payments due on existing contracts or not renewing at the end of existing contract terms,” the company said.
Originally founded in Eau Claire, Wisconsin, Jamf has grown into a sizable company in the Twin Cities. The company went public in July 2020, ahead of a flurry of IPOs in the year that followed.
