Leadpages Lays Off 12 Percent Of Workforce
Leadpages is growing, but that doesn’t mean the company is immune to layoffs. The company said it reduced its headcount by 22 this week.
The Minneapolis software startup said all of the jobs come from the product and engineering departments and make up 12 percent of the company’s 180 employees.
The news comes shortly Leadpages announced its first acquisition, Drip, a marketing automation company based in California.
Tech.mn reports that the layoffs aren’t because the company is facing financial difficulties. Instead, CEO Clay Collins said it was a way to better streamline decision-making amongst teams in company that was becoming increasingly siloed as it grew.
“We will be implementing a new structure with smaller cross-functional teams in order to decentralize decision making and allow teams to take greater ownership of the product,” he said. “These new, smaller teams will enable an even greater focus on customer engagement and satisfaction by each team member.”
Employees let go are receiving “generous” severance packages, according to Collins. In his statement, he said that the company would continue hiring and recruitment, including in its engineering department with employees that have “the skills and experience required in our new organizational structure.”