Software company Pegasystems to lay off 4% of workforce

Software company Pegasystems is laying off 4 per cent of its over 6,000-strong workforce, as recession fears loom in 2023.

In a filing with the US Securities and Exchange Commission (SEC), the firm said it is likely to incur a charge of $18.9 million in the fourth quarter of 2022 related to cash severance and benefit costs for terminated employees.

The workforce reductions "are part of the company's goal to improve its go-to-market operating model," read the company filing.

According to Boston Business Journal, the company is engaged in a detailed review to improve its "go-to-market operating model".

Reports earlier said that shareholders of Pegasystems have suffered hefty losses as the stock share price is down 69 per cent. The returns over three years have also been sad for investors.

The software company joins Amazon and Salesforce which have announced major job cuts in the New Year.

While Amazon announced to sack around 18,000 employees, Salesforce has asked nearly 7,000 employees to go.

The Amazon CEO Andy Jassy said in a statement that they were not done with the annual planning process as earlier mentioned, and "I expected there would be more role reductions in early 2023".

According to the layoff tracking website, tech companies have sacked over 28,000 employees in just 5 days into the New Year.

In 2022, 2,43,468 workers were laid off by 1,168 companies.