Calgary-based tech star Benevity says it will lay off 14% of its staff
The Calgary-based tech firm Benevity says it is laying off 137 staff members as it cites a lack of demand for its services relative to its team size.
In a statement posted to its website, Benevity CEO Kelly Schmitt wrote that demand for its services had grown consistently for more than a decade.
"In response to that demand, we significantly increased the size of our team. But over the last nine months, macroeconomic conditions have changed dramatically, and the demand we expected to see has slowed significantly," Schmitt wrote.
"Although we continue to experience healthy year-over-year growth, the hard reality is that as a company, we are overbuilt for current market conditions."
The layoffs represent 14 per cent of the company's workforce.
In 2020, Benevity became a so-called tech "unicorn" after reaching a $1.1-billion US deal with British private equity firm Hg Capital LLP.
Anup Srivastava, a Canada research chair and a full professor at the Haskayne School of Business at the University of Calgary, said more layoffs along these lines are likely given global trends.
"Many such companies have been affected. So I will not blame a Calgary context for this, since they're addressing a global market and they attracted global investors," Srivastava said. "It's a global phenomenon."
Though it is headquartered in Calgary, Benevity also has offices in Toronto, Victoria, and elsewhere around the globe. All parts of the organization were impacted by the layoffs, not just those in the Calgary office.
Benevity declined a request for an interview on Wednesday. In its release, the company promised "generous severance, consideration for bonus, extension of health benefits, career transition support and ownership of company laptops" to those recently laid off.
The company provides software that manages charitable donations and grants.
