Formstack Layoffs: What Happened & Why?

On May 17, 2023, Formstack laid off 20 employees, representing 0.4% of its workforce. This move has raised concerns within the company and the industry.

Headquartered in Indianapolis, Formstack operates in the "Other" industry. The recent layoffs reflect broader economic challenges and strategic adjustments within the company.

Why did Formstack have Layoffs?

Formstack decided to lay off employees as part of a larger restructuring plan aimed at ensuring the company's long-term success and growth. The company is streamlining internal processes and simplifying its operating model to continue providing a high-quality customer experience and delivering innovation despite economic challenges.

• Streamlining Internal Processes: The company aims to make its operations more efficient by reducing complexity.
• Simplifying the Operating Model: This involves restructuring to focus on core business areas and eliminate redundancies.
• Ensuring Long-term Success: The layoffs are part of a strategic move to position Formstack for future growth and stability.

Company Statement

"Today has been a very hard day. Formstack is saying goodbye to some wonderful people. Amongst the individuals departing Formstack are high performers, culture champions, and solid people who will certainly go on to make incredible contributions at organizations across the globe." - Chris Byers, CEO of Formstack

Byers' statement underscores the emotional weight of the decision and acknowledges the significant contributions of the departing employees. The layoffs are part of a strategic plan aimed at ensuring Formstack's long-term success and growth. This involves streamlining internal processes and simplifying the operating model to maintain a high-quality customer experience and continue delivering innovation despite economic challenges.

Impact on Workforce and Industry

The reduction of 20 employees at Formstack has inevitably affected the company's operations, particularly in departments where these roles were critical. Specific roles impacted include high performers and culture champions, which may lead to short-term disruptions in workflow and morale.

In the broader industry, other companies in the tech sector have also announced layoffs recently, reflecting a trend of economic challenges. For instance, companies like Meta and Amazon have similarly reduced their workforce to streamline operations and cut costs.

Looking Ahead

The layoffs at Formstack signify a pivotal moment for the company, marking a shift towards a more streamlined and efficient operational model. This move is expected to position Formstack for sustainable growth and innovation in the future.

• Focus on Core Competencies: Formstack will concentrate on its primary business areas to drive growth and innovation.
• Investment in Technology: The company plans to invest in new technologies to enhance its product offerings and improve customer experience.
• Employee Development: Formstack will prioritize the development and retention of its remaining workforce to ensure long-term success.

Get Started with Sunset Today!

Sunset helps startups wind down by handling all the legal, tax, and operational burdens, allowing founders to avoid penalties, reduce liabilities, and move on quickly. For personalized guidance and support, contact us to schedule a consultation or learn more. Sign up today and try it out!