Zendesk to slash 4.9% of workforce, or roughly 300 employees

According to a regulatory filing, on November 3, 2022, the board of directors of Zendesk approved a plan to reduce Zendesk’s current workforce by approximately 300 employees, representing approximately 4.9% of Zendesk’s total global workforce. This decision was based on cost-reduction initiatives intended to reduce operating expenses and sharpen Zendesk’s focus on key growth priorities. Zendesk currently estimates that it will incur charges of approximately $28M in connection with the reduction in force, primarily consisting of severance payments, employee benefits and related costs. Zendesk expects that approximately $8M of these charges will be incurred in the fourth quarter of 2022, and that the reduction in force will be substantially complete by first quarter of 2023, subject to local law and consultation requirements, which may extend the process beyond the first quarter of 2023 in certain countries. Of the total charge, approximately $20M are expected to be future cash expenditures. The charges Zendesk expects to incur are subject to assumptions, including local law requirements, and actual expenses may differ materially from the estimates disclosed above.