Talkdesk Announces Third Layoff Round in Under 14 Months: What It Means for Employees and the Company

Talkdesk, a software company once valued at $10 billion and dedicated to enhancing customer service for large corporations, has enacted another round of layoffs—the third in just over a year.

On Tuesday, a Talkdesk representative confirmed via email that the company has implemented “limited headcount reductions in a few areas,” but did not disclose the number of employees affected by this latest measure.

Founded 12 years ago and headquartered in San Francisco, Talkdesk leverages artificial intelligence (AI) and machine learning to elevate customer service for midmarket and enterprise businesses. At the time of its last funding round, the company boasted a clientele of over 1,800 companies, including industry giants like IBM, Acxiom, Trivago, and Fujitsu.

In the past 14 months, Talkdesk has executed multiple layoffs as part of a strategy to manage costs amid lower revenue projections, according to a source who requested anonymity. The company previously cut jobs in February 2023 and August 2022, when its workforce numbered around 2,100. The current total of remaining employees is unclear.

CEO Tiago Paiva assured stakeholders in an emailed statement that the recent job cuts would not impede the company's operations. “The investments and advancements we’ve made in AI position us at the forefront of customer experience (CX) innovation, enabling a leaner, more agile global organization,” Paiva stated. “These limited reductions will not hinder our speed of innovation. We remain committed to investing in strategic areas to enhance our efficiency and scalability. For instance, driven by our recent FedRAMP In Process designation and our success in healthcare and regulated markets, we are ramping up research and development (R&D) investments in the U.S. Our business is robust, and we see significant market opportunities ahead.”

In August 2021, Talkdesk secured $230 million in Series D funding, which propelled its valuation to $10 billion.

Update on September 27: Affected employees reported that at least 140 individuals, primarily in Portugal, were impacted by the latest layoffs. According to the Portuguese publication Observador, “Employees are being offered to sign a termination by mutual agreement—this would be treated legally as a resignation and would not guarantee access to unemployment benefits. The proposal was presented on Monday, with a deadline set for Friday, September 29th, for employees to communicate their decisions to the company.”

AI, Layoffs, Talkdesk