Outreach laid off 5% of its staff, the third round of cuts in the past year for the Seattle sales software startup as part of cost-cutting efforts.
A company spokesperson confirmed the headcount reduction in response to a GeekWire inquiry. Outreach now has about 1,000 employees across offices in Prague, London, Atlanta, and Indianapolis, in addition to the Seattle headquarters.
“Outreach continues to make operational and organizational adjustments to align with our strategic growth plan and path to profitability,” Outreach spokesperson Andrew Schmitt said in a statement.
Outreach had a 5% cut in August 2022, then a 7% workforce reduction in February. The startup also said in February that it suspended merit increases and the expansion or relocation of offices.
Outreach CEO Manny Medina told GeekWire in February that the company’s sales were affected by the widespread layoffs across tech, as it operates on a per-user basis. But, at the same time, the tighter spending climate drove sales reps to rely more heavily on the startup’s tools for buyer qualification, offsetting some of that loss in demand, he added.
Outreach, launched in 2014, has more than 6,000 customers including Zoom, Siemens, Okta, DocuSign, and McKesson. It became a so-called unicorn startup in 2019 when it raised $114 million and surpassed a $1 billion valuation. It raised two additional fundraising rounds in 2020 and 2021.
Seattle unicorn startups including Rad Power Bikes, Highspot, Karat, Convoy, and others have made cuts this year.
Outreach is backed by Sands Capital, Salesforce Ventures, Operator Collective, Lone Pine Capital, Spark Capital, Meritech Capital Partners, Trinity Ventures, Mayfield, and Sapphire Ventures.
The startup is ranked No. 2 on the GeekWire 200, our list of the top privately held companies in the Pacific Northwest.
