Workhuman Announces 10% Global Workforce Reduction Amid Business Realignment

Workhuman, a leading employee engagement and recognition platform, has announced a difficult decision to reduce its global workforce by approximately 10% in order to realign its investments, balance growth and profitability, and address the volatile macroeconomic environment. The company’s CEO, Eric, communicated the news in a heartfelt letter to the employees, stating that this decision was one of the hardest the company has had to make in its history.

Founded on the mission to make work more human, Workhuman has experienced significant growth and success in recent years. However, to continue delivering growth and profitability, the company must now make strategic changes and invest in new initiatives that align with its long-term objectives. In the letter, Eric emphasized that the company’s business remains fundamentally strong and resilient, and that the workforce reduction is part of a broader set of organizational and strategic investment changes.

The reduction will affect employees at all levels and in all locations. Despite the difficulty of the decision, the company remains committed to treating all employees with dignity and respect, adhering to its core value of “Respect for All.” Workhuman will provide generous support to those who are affected, including severance packages, extended healthcare benefits, and career transition assistance.

Severance packages will include a minimum of three months’ pay, plus an additional two weeks per year of service, capped at nine months. Unused paid time off will also be paid out. Healthcare benefits will be extended for a minimum of three months for those affected. To assist employees in finding new positions, Workhuman has engaged external consultants to provide resume building, coaching, guidance, and job-seeking support.

In addition to these measures, the company will also provide mental health and wellbeing support through employee assistance services for both impacted and remaining employees globally. To ease the stress of suddenly losing work-related equipment, departing employees will be allowed to keep their current laptops. Workhuman’s IT department will assist in reinstalling a clean operating system on the machines.

To ensure a smooth transition and maintain a sense of community, impacted employees will continue to have access to their email, Slack, and other communication channels through the end of business on Friday. This will allow for goodbyes and the sharing of personal contact information, a move that demonstrates trust and respect for the departing employees.

For those remaining with the company, this period of change can be emotionally challenging as well. The loss of colleagues and friends may be difficult to process, but Workhuman encourages its employees to support one another and uphold the company’s values during this time. The focus, for now, will be on providing assistance to those departing, while also respecting the privacy and confidentiality of all employees.

Despite the workforce reduction, Workhuman plans to continue hiring and investing in strategic initiatives that are critical to the company’s continued growth and success. In fact, even after the recalibration, the company’s workforce will still be larger than it was just 12 months ago, ensuring sufficient capacity to achieve its ambitious growth objectives.

As Workhuman moves forward, the company remains confident in its ability to navigate the challenges of the current macro environment and capitalize on the growing market for employee engagement and recognition solutions. By focusing on strategic investments and maintaining a strong commitment to its mission, Workhuman aims to continue providing value to its customers and fostering a culture of connection, engagement, and wellbeing in the workplace.

In closing his letter, CEO Eric expressed gratitude to all who have contributed to Workhuman’s journey thus far and thanked everyone for their focus, dedication, and resilience. As the company navigates these challenging times, its commitment to making work more human remains unwavering.