Sumo Logic, a big data analytics software company, has recently laid off 79 employees, adding to the ongoing wave of job cuts in the tech industry worldwide. This move comes less than a month after the company was acquired by global investment firm Francisco Partners for $1.7 billion, according to reports from The Information.
In an email to Sumo Logic staff, CEO Joe Kim announced the job cuts. The report states that one group of employees received emails notifying them of their role terminations, while another group received emails stating that their positions were secure.
As of the company’s most recent annual filing, Sumo Logic employed a total of 983 people. Anonymous Sumo Logic employees shared on the online company review site Blind that the laid-off workers received two months of pay but did not receive additional benefits.
Sumo Logic, known for its SaaS analytics platform that enables reliable and secure cloud-native applications, had previously announced in May that Francisco Partners had completed the acquisition. The all-cash transaction valued Sumo Logic at approximately $1.7 billion, offering Sumo Logic stockholders $12.05 per share in cash, which represented a premium of around 57%.
Ramin Sayar, President and Chief Executive of Sumo Logic, expressed pride in the company’s achievements since its establishment in 2010. He emphasized their commitment to providing a trusted, cloud-native, SaaS analytics platform that helps customers transform complexity into valuable insights and accelerate their adoption of cloud transformation.
The layoffs at Sumo Logic highlight the challenging landscape for tech companies and employees alike, as the industry continues to undergo shifts and adjustments in response to evolving market dynamics.
