Hyland, based in Westlake, California, confirmed to 3News that it is laying off approximately 1,000 employees, or 20% of its workforce.
Hyland President and CEO Bill Priemer called the move the hardest change we’ve ever had to make in a letter to employees that was also posted on the company’s website.
We are reorganizing our company. We are removing management layers, resizing teams, and reassigning responsibilities across departments and levels. These changes will reduce our team size by about 1,000 employees, or about 20% of our workforce Priemer put pen to paper. I recognize and understand the gravity of this decision, as well as the impact it will have on our departing friends and colleagues. I accept responsibility for the decisions we’ve made today, and I understand how difficult this is for you all.
Priemer went on to say that all employees in the United States would receive an email informing them of their status with the company.
Those affected by the layoffs would be invited to a Zoom webinar to learn about the offboarding process, including severance pay, healthcare coverage, and outplacement services. Employees from outside the United States will have to wait longer, according to Priemer.
Priemer cited the “global economic situation and shifts in our market” as the reasons for the layoffs as Hyland transforms into a cloud company.
“This effort has necessitated significant investments in both people and systems,” he wrote. “We planned for this investment, but we underestimated the extent to which inflation, rising interest rates, and wage increases would affect our expenses.” Furthermore, the current difficult economic climate is causing many organizations to reduce their technology expenditures.
We determined that streamlining the organization, both operationally and financially, is necessary to ensure Hyland’s long-term success after much deliberation with our board and senior executive team, despite enacting significant cost-cutting measures such as hiring freezes, travel restrictions, and reductions in discretionary spending.
This is disappointing news, but I also understand business and competition, according to Westlake Mayor Dennis Clough, as reported by WKYC. According to what I’ve been told, this is all about being more streamlined and being able to adapt quickly in the marketplace.
Clough says Hyland is one of the city’s largest employers, along with University Hospitals St. John Medical Center and American Greetings, both of which had layoffs in 2018. According to the mayor, the majority of the city’s revenue comes from income tax.