Synchronoss Technologies slashed 10 per cent of its staff and cut executive pay as part of a cost-reduction and restructuring effort designed to help the company weather the Covid-19 (coronavirus) pandemic and increase efficiency.
During an earnings call, CEO Glenn Lurie (pictured) said “the majority of the cuts were in management so that we could flatten the organisation”. Notable departures included CMO Mary Clark (pictured, right), whose duties were consolidated under CCO Jeff Miller.
CFO David Clark added staff reductions covered its R&D, IT, sales, marketing, and general and administrative operations.
It had 1,659 full-time employees at end-2019.
Remaining executives agreed to a 15 per cent reduction in their base salary, while a raise for employees due in March was put on hold “indefinitely”, Lurie said.
The moves are expected to reduce annual expenses by more than $40 million, with savings in 2020 expected to total $30 million.
Lurie said “these actions are not just about Covid-19”, but acknowledged the pandemic accelerated the necessity of restructuring: “We recognised we need to be a leaner organisation going forward to drive business more efficiently and increase the speed of execution in 2020 and beyond.”
He added eliminating Clark’s position was an “extremely tough decision”, but added the new consolidated structure will “significantly enhance the connectivity between product delivery and our go-to-market initiatives”.
The company narrowed its net loss in Q1 to $11.99 million, down from $27.58 million, with revenue falling 12.46 per cent to $77.12 million.Subscribe to our daily newsletter Back