It is fairly obvious that artificial intelligence will consume jobs. Informatica, a Bay Area-based AI startup, has laid off 10% of its workforce.
Anyone reading this news is probably wondering if the company is doing well or not. However, the answer is that the company was doing very well. In fact, it performed exceptionally well in the third quarter. It was so successful that it realised it could do without 545 of its employees!
The job cuts appear to be part of the enterprise cloud data-management firm’s growth strategy and restructuring plans, with the goal of ensuring long-term efficiency and success.
The layoffs will be spread out over the next year or so and are expected to save up to $84 million. This will also bring the company one step closer to becoming an AI-powered cloud provider. In global real estate, the company hopes to save at least $35 million.
This move will help the company save money globally while maintaining its growth expectations.
According to media reports, the company authorised a $200 million share buyback of its own stock just before the layoff announcement.
The company’s chief executive officer is Amit Wali, an Indian American. In the third quarter, the company’s subscription annual recurring revenue (ARR) increased 15% year on year to $1.08 billion.