Thoughtworks layoffs 2023: Software firm sacks nearly 500 employees

Software consultancy company Thoughtworks has announced to lay off nearly 500 employees, or 4 per cent of its global workforce to cut costs amid global macroeconomic conditions.

Nasdaq-listed Thoughtworks has more than 12,500 employees across 18 countries. The company also has a strong presence in India.

According to TechCrunch, the company first informed impacted employees about the decision earlier this week and the layoffs will continue in the coming days.

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"We confirm that we have made the difficult decision to reduce our workforce by about 4 per cent globally," a Thoughtworks spokesperson was quoted as saying in the report.

"These changes were necessary to support the future growth of our business," the company spokesperson added.

It got listed on Nasdaq in 2021 through an initial public offering (IPO) that raised $773 million.

Thoughtworks' revenue grew 8.3 per cent year-over-year to $310.7 million during the fourth quarter (Q4).

"We are pleased with our performance in the fourth quarter and our clients continue to look to us to help them navigate these uncertain times and tackle their biggest technology challenges," said CEO Guo Xiao.

Thoughtworks generated a net income of $16.1 million in the fourth quarter, compared with a $16.9 million loss 12 months earlier.

The company expects to generate between $303 million and $305 million in revenue in the ongoing quarter.

Thoughtworks joins a growing list of tech companies which have laid off thousands of employees in recent months amid recession fears.

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