DigitalOcean's lays off 10% of it's workforce

Sat, 18th January 2020, 18:10

New York-based hosting company DigitalOcean announced today that it will be laying off employees as part of an internal restructuring following the hiring of a new CEO and CFO last summer.

In a statement to TechCrunch, DigitalOcean confirmed the restructuring would come at the cost of some employees losing their jobs. "DigitalOcean recently announced a restructuring to better align its teams to its go-forward growth strategy. As part of this restructuring, some roles were, unfortunately, eliminated." While an exact number was not confirmed within the statement, sources for TechCrunch estimated that about 30 to 50 of DigitalOcean's 500 employees would be laid off.

However, the company was also quick to emphasize that the restructuring is not due to any sort of financial trouble or profit loss. "DigitalOcean continues to be a high-growth business with $275M in [annual recurring revenues] and more than 500,000 customers globally. Under this new organizational structure, we are positioned to accelerate profitable growth by continuing to serve developers and entrepreneurs around the world."

This restructure falls in line with CEO Yancey Spruill's statement last summer after his hiring was announced, where he indicated that changes would be coming to the company. "My aspiration is for us to continue to provide everything you love about DO now, but to also enhance our offerings in a way that is meaningful, strategic and most helpful for you over time."

Started in 2011, DigitalOcean specializes in cloud based services, community resources, and tutorials aimed at developers, boasting GitLab, Slack, and WeWork amongst its clients. Last July, the company announced that Spruil, a former CFO and COO at SendGrid, would be taking over as CEO and former EnerNOC CFO Bill Sorenson as the new CFO. This followed the sudden resignation of former CEO Mark Templeton, who stepped back for personal reasons after a year in the position.

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