Vancouver-based technology company ZoomInfo has laid off about 120 employees across its business, the company announced in a Securities and Exchange Commission disclosure earlier this month.
“These changes will flatten our structure and give us the opportunity to be more agile with decision-making and execution,” the company said in a statement Wednesday.
The layoff represents about 3 percent of ZoomInfo’s workforce, which has employees not only in Vancouver but worldwide.
ZoomInfo is known as a go-to-market company, offering several software programs geared toward marketing and business operations, all powered by its extensive database of employee and business information.
The business reported in May that it had brought in $300.7 million in revenue in its first quarter of 2023, a 24 percent increase over the beginning of the previous year.
ZoomInfo founder and CEO Henry Schuck said at the time that most of the company’s clients had been impacted by the macroeconomic climate.
The company’s disclosure stated that this move is estimated to cost about $6 million.
According to the disclosure, the company is providing laid-off employees with an average of 10 weeks of severance pay, based partially on job level and tenure. It’s also providing a three-month health insurance subsidy to its U.S.-based employees and a lump sum representing about three months of education fund deductions to its Israel-based employees.
ZoomInfo’s disclosure added that the layoff will also “enable investment in key opportunities for long-term growth while driving continued profitability.”
The disclosure went on to read that the company plans to hire within its sales, engineering and customer success departments and to invest more in its generative artificial intelligence capabilities.
Efficiency will be a focus in the rest of the company and hiring will be done where the company expects it will have the most impact.
“We’re still in the early stages of capturing our market opportunity, and we’re confident that these changes, while difficult, will ensure we have the right people in the right roles to drive our long-term growth and success,” said the company.
ZoomInfo trades on the Nasdaq as ZI. Its stock closed Wednesday at $27.65, down from $28.46 on Tuesday. The stock closed at $26.45 on June 2, the day ZoomInfo announced its layoff.