Top

J T posted ...

Login to start new topic
Help topics

New Relic lays off staff as it combines engineering teams

Category: News

Posted: 06-29-20 10:10 PM - Views: 876

By: J T

Back to post list

0

Share this topic with your colleagues

Start of discussion

New Relic lays off staff as it combines engineering teams 

By
Staff Reporter, Portland Business Journal

Updated

Software company New Relic laid off “less than 20 people” as part of a restructuring that combines two of its engineering teams, the company said Monday afternoon.

The San Francisco-based company, which has its engineering headquarters in downtown Portland, said it is integrating its site engineering team with its core technology platform team.

“This combined team will be responsible for continuously improving the scale and reliability of our platform,” the company said in a written statement. The layoffs were attributed to overlapping job duties and occurred across the company’s global footprint.

“We did not take this decision lightly and we are working to ensure the impacted individuals have our support during this unprecedented time,” according to the statement.

Social media posts about the move indicated that those affected were caught off guard.

This is the latest change at New Relic, which has seen several leadership and other internal changes since last fall. The highest ranking executive in the company’s Portland office, chief product officer Jim Gochee, retired in November. He was replaced in January by former Adobe executive Bill Staples.

The company also created the position of president and chief operating officer and installed board member Michael Christenson to the role.

Teams have been reorganizing under the new leadership. The company is still hiring in other areas of the business including engineering, product, sales and customer support. The company is one of the largest tech companies in Portland. It has more than 500 employees in U.S. Bancorp Tower.

New Relic has been focused on its next-generation product called New Relic One, to help customers visualize and map complex development environments. That product took two years of development and was released in 2019. That development process and subsequent realignment around New Relic One contributed to the company’s recent stumbles. CEO Lew Cirne has said that product will set the company up for the next decade of growth, however, that work disrupted some short-term goals.

Last month, during the company’s fourth quarter earnings call, Cirne described the last fiscal year as a transitional time. He told industry analysts the company is through that process.

“As I've said in previous calls, I think we could have executed better throughout most parts of the business as we went through that transitional year,” Cirne told analysts.

New Relic makes software that helps customers monitor their own software applications and has been growing with the rising importance of rapid software development in a variety of businesses.

The company recently completed its fiscal year 2020. In the fourth quarter it had revenue of $160 million, up 21 percent from the year-ago quarter. For the full year it had revenue of $600 million, up 25 percent from 2019.

For the year, the company widened its losses. It lost $85.5 million, or $1.52, compared to a loss of $33.1 million, or 72 cents a share, in 2019.

Back

Replies ...

Reply Nr.2 from J T on 06-30-20 10:09 AM

Good by the numbers but bad if you were impacted.

Reply Nr.1 from Admin on 06-30-20 9:21 AM

20 out of 500 staff in Portland does not sound too bad - 4% layoffs seems very good in today's climate.  

Please login to post or reply

TALinked Sponsor

Advertise your company and services on TA-Linked.
Find out more Here

Let others know!

Let other Trade Associations know about TALinked. Click to grab the code