AvePoint, an independent software vendor focusing on the Microsoft ecosystem, Monday revealed plans to lay off about 5 percent of the company’s workforce.
Tianyi “TJ” Jiang, CEO and co-founder of the Jersey City, N.J.-based ISV, Monday wrote in a blog post on the company’s website that macroeconomic environment issues are forcing AvePoint to take steps to improve efficiency, which includes letting grow of about 5 percent of its employees.
The move comes as AvePoint is evaluating how to remain focused on sustainable growth, Jiang wrote.
[Related: Tech Layoffs In 2022: 23 Companies Slashing Their Workforce]
“This is especially important given the current macroeconomic environment, the shifting market expectation for companies in our market segment to focus on efficiency and the need to responsibly plan for a wider range of outcomes in the near-term. It is important that we control the controllable, and take the steps necessary to become a leaner, more efficient organization,” he wrote.ADVERTISEMENT
https://eff6dd20a594b0d1b126b5334b3a31db.safeframe.googlesyndication.com/safeframe/1-0-40/html/container.html
The layoffs, which will happen in multiple countries worldwide, is expected to cost the company about $3 million in restructuring expenses related to severance and compensation benefits during its fourth fiscal quarter, but shouldn’t impact the quarter’s revenue expectations, Jiang wrote.
“We assessed how each team fit into our strategy and determined the optimal size and shape of those groups going forward. We then did a comprehensive review of every team member and made decisions based on how well those skills matched our future business needs. The result is we are parting with colleagues who have made valuable contributions to AvePoint,” he wrote.
The five percent workforce cut amounts to about 65 employees, according to layoffstracker.com.
AvePoint is a 21-year-old provider of data governance, protection, and migration technology for Microsoft 365 environments.
The company is a five-year winner of the Microsoft Partner of the Year award, and provides its SaaS solutions directly or via MSPs to over 9 million cloud users worldwide. The company’s full suite of data management solutions for Microsoft 365 is hosted across 13 global data centers to provide scalability and to support data sovereignty requirements.
AvePoint in early November reported third fiscal quarter SaaS revenue of $30 million, up 34 percent year-over year, and total revenue of $62.7 million, up 16 percent. Total annual recurring revenue for the quarter was up 30 percent to $191.7 million.
AvePoint also reported a GAAP operating loss during the quarter of $7.4 million, down from $28.7 million a year ago. Non-GAAP operating income for the quarter was $2.2 million, down from last year’s $4.0 million.
The company has been expanding. AvePoint during its third fiscal quarter acquire tyGraph, which provides a platform that allows organizations to organize, measure, and analyze human interactions to accelerate success in the digital workplace, as well as Essential, a South Korea-based solution provider. AvePoint also set up a new research and development hub in Singapore.LEARN MORE: Cloud Software | Software as a Service
Joseph F. Kovar is a senior editor and reporter for the storage and the non-tech-focused channel beats for CRN. He keeps readers abreast of the latest issues related to such areas as data life-cycle, business continuity and disaster recovery, and data centers, along with related services and software, while highlighting some of the key trends that impact the IT channel overall. He can be reached at [email protected].
RELATED CONTENT
The 10 Hottest AI Startup Companies Of 2022HPE SVP Hang Tan On HPE, VMware ‘Co-Innovation,’ And The $32.3B Private Cloud OpportunityIBM Gives Partners Access To Three New AI Libraries TO TOPADVERTISEMENT
https://eff6dd20a594b0d1b126b5334b3a31db.safeframe.googlesyndication.com/safeframe/1-0-40/html/container.html