New Relic Layoffs and Business Changes Unveiled

New Relic, a leading digital analytics platform, has announced significant layoffs and business changes. The company plans to cut around 1,000 jobs, which is about 13% of its global workforce.

The layoffs are a result of New Relic's efforts to streamline its operations and focus on its core products. This move is aimed at improving the company's financial performance and competitiveness in the market.

New Relic's CEO, Bill Lapson, stated that the company is committed to investing in its remaining employees and providing them with the necessary resources to drive growth and innovation. The company will be realigning its teams and resources to better serve its customers.

The layoffs and business changes are expected to result in significant cost savings for New Relic, which will help the company to achieve its financial goals.

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New Relic has made headlines with a massive $6.5 billion buyout agreement, orchestrated by two local private equity firms, Francisco Partners and TPG.

The company has been undergoing significant changes, including layoffs, with the latest round eliminating up to 255 jobs, about 10% of its workforce.

New Relic employed about 600 people in downtown Portland before the pandemic but has since moved mostly to hybrid and remote work.

The company has downsized its footprint in the U.S. Bancorp Tower in downtown Portland, also known as "Big Pink", and it's not clear how many employees still work in the city.

New Relic laid off 160 employees in 2021 and another 110 last year, and this latest round of layoffs includes 155 employees in the U.S. and 57 internationally.

Laid-off employees will receive three months' pay, extended benefits, and career placement assistance.

New Relic has been repositioning its business in the past few years, seeking new market opportunities and a more efficient operating structure.

The company will spend between $18 million and $22 million on termination costs and other expenses related to the restructuring.

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New Relic is making significant changes to its business, including exiting its subscription business in the next four-to-six quarters. This move will simplify the company and create a singular focus on consumption.

The company plans to hire about half of the reduced headcount in targeted areas to address opportunities for consumption business growth. This means that despite layoffs, New Relic is still looking to expand in certain areas.

New Relic has made tremendous progress in transitioning its business, with its consumption business growing above market growth rates. The company now has a more profitable growth model, with over $900 million in revenue and over 10% non-GAAP operating margin in its last fiscal year.

New Relic is making a significant change by exiting its subscription business. This decision comes after three years of steady progress.

The company plans to make this transition in the next four-to-six quarters, which will simplify their business model and allow them to focus on consumption. This shift is expected to create a more efficient and optimized business.

New Relic's CEO, Staples, believes that making this change now is crucial, especially in light of current economic uncertainty. He wants to help the company's customers be more efficient and optimize their spend.

By exiting the subscription business, New Relic will be able to accelerate their delivery of their promise and leave the transition period behind. This change will allow them to focus on their future and create a more streamlined business.

New Relic is still hiring, but not in every area. The company plans to hire about half of the reduced headcount in targeted areas to address opportunities for consumption business growth.

New Relic's leaders conducted a thorough review to ensure every resource is aligned with their future needs. This review led to difficult decisions around role redundancies and skills not aligned with their strategic priorities.

The company's goal is to transition its business into one that brings ubiquity to observability simply and profitably while sustaining a high growth rate. This goal has served as their north star and they've made tremendous progress.

New Relic's consumption business has been growing above market growth rates, and the company is more broadly adopted than any other observability platform. They've turned a corner toward profitable growth and closed the last fiscal year with over $900 million in revenue and over 10% non-GAAP operating margin.

New Relic's main engineering office was located in downtown Portland, where it employed about 600 people before the pandemic.

The company has since shifted to a hybrid and remote work model, which it calls "flex first."

New Relic has downsized its footprint in the U.S. Bancorp Tower in downtown Portland, also known as "Big Pink", and it's not clear how many employees still work in the city.

The building's managers say about 600 people work in the entire tower each day, down from about 3,000 before COVID-19.

New Relic will spend between $18 million and $22 million on termination costs and other expenses related to the restructuring.

The company will lay off up to 255 jobs, about 10% of its workforce, with 155 employees in the U.S. and 57 internationally affected.

New Relic has been repositioning its business in the past few years, seeking new market opportunities and a more efficient operating structure.

The company has laid off 160 employees in 2021 and another 110 last year, with the latest job cuts following a review of company operations.

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