D2iQ Layoffs: What Happened & Why?

On April 3, 2020, D2iQ laid off 34 employees, representing 0.13 of its workforce. This move reflects the company's ongoing adjustments in a challenging market.

Headquartered in the SF Bay Area, D2iQ operates in the Infrastructure industry. The layoffs are part of broader efforts to streamline operations and adapt to evolving industry demands.

Why did D2iQ have Layoffs?

D2iQ decided to lay off 34 employees due to a projected 40% drop in sales and the need to cut costs amid the COVID-19 pandemic. These layoffs were part of broader cost-cutting measures to ensure the company's sustainability during the economic downturn.

• Projected Sales Drop: The company anticipated a 40% decline in sales for the rest of the year.
• Cost-Cutting Measures: D2iQ needed to reduce costs by 25% to maintain a sustainable business model.
• Economic Impact of COVID-19: The pandemic's economic downturn had an immediate and likely future impact on the business.

Company Statement

"The COVID-19 driven economic downturn has had an immediate and likely future impact on our business and we made this choice only after significantly cutting all discretionary expenses," a D2iQ spokesperson told Business Insider.

This statement underscores the severe financial strain the pandemic has placed on D2iQ. The company had to make tough decisions to ensure its long-term viability, including reducing its workforce by 13%. These layoffs were part of a broader strategy to cut costs by 25% and avoid running out of cash by summer 2021.

Impact on Workforce and Industry

The reduction of 34 employees at D2iQ has inevitably strained the company's operations, particularly affecting departments like sales and customer support. This downsizing means fewer resources to manage client relationships and drive new business, potentially slowing growth and response times.

In the broader infrastructure industry, D2iQ is not alone in facing workforce reductions. Companies like Cisco and VMware have also announced layoffs recently, reflecting a trend of cost-cutting measures across the sector due to economic uncertainties.

Looking Ahead

The layoffs at D2iQ signify a critical juncture for the company, emphasizing the need for strategic pivots to ensure future stability and growth.

• Focus on Core Products: D2iQ plans to concentrate its resources on its most profitable and promising product lines.
• Increased Automation: The company aims to implement more automation in its operations to enhance efficiency and reduce dependency on manual labor.
• Strategic Partnerships: D2iQ is looking to form alliances with other tech firms to expand its market reach and leverage shared technologies.

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