WESTLAKE, Ohio — Hyland Software, a Westlake-based software and digital services provider, announced Monday that it is laying off 20% of its workforce, or about 1,000 employees.
Hyland Software CEO Bill Priemer announced the layoffson the company’s website Monday in a letter to employees that reads, in part:
"We are restructuring our organization. We are removing layers of management, adjusting team sizes and reassigning responsibilities across departments and levels. These changes will reduce the size of our team by about 1,000 employees, which is approximately 20% of our workforce.
I recognize and understand the gravity of this decision and the impact it will have on our friends and colleagues who will be leaving. I take responsibility for the decisions we are sharing today, and I realize how difficult this is for you all."
Hyland employees tell News 5 they were first notified of the layoffs by email Monday morning. Those losing their jobs received a second email minutes later. The CEO also addressed the company's future in a virtual meeting Monday, though employees said they were unable to ask questions.
“Frustration, confusion, fear: it all kind of hits you at once,” an employee named Keith said in a phone interview Friday. “Through our Microsoft Teams messages, it was pretty solemn. I think everybody was pretty shocked. I think there were a lot of tears, a lot of confusion.”
He explained the company had been operating with a tight travel budget and paused hiring, promotions, and merit-based raises in recent months. Other employees believed the budget restrictions were made to avoid layoffs. Many were shocked by the extent of the workforce reductions Monday.
“I speak for myself, but I think anybody that got laid off probably didn’t see it [being] on this magnitude,” Keith said. “That spans across HR, research and development, project management, sales, account management. There were whole departments cut.”
In his letter, Priemer said the layoffs come as the company is "navigating the global economic situation and shifts in our market." He pointed to inflation, interest rates, and wages all rising, while clients pull back their spending on the company's products.
“They’re following the lead of other tech companies that are paring down their workforces as the fear of recession and cutting costs really takes precedent for these tech companies,” said Michael Goldberg, an associate professor of design and innovation at Case Western Reserve University's school of management.
Goldberg explained tech companies, large and small, have been restructuring in the past year as soaring pandemic-era demand wanes and companies find themselves needing to cut costs.
According to some analysis, more than 166,000 employees from more than 550 tech companies were laid off in the first three months of 2023.
Though the U.S. labor market remains strong, other nontech companies, like fast food giant McDonald’s, is reportedly facing layoffs. Goldberg said it could mean the economy is slowing, but it doesn't necessarily indicate a recession or more widespread layoffs.
"It's not clear that what we're seeing in terms of significant layoffs in the tech sector is going to be a ripple effect across the economy," Goldberg said. “[There are] lots of dynamics that are changing in the hiring market and our economy, but I tend to be hopeful about the future.”
Hyland's letter states that laid-off employees in the U.S. will receive a minimum of three months’ severance – more for extended tenure, a minimum of five months of healthcare coverage, continued access to the employee assistance program, and career resources to help find a new job.
Many domestic employees will off-board with the company on Tuesday. Others in highly technical or specialized departments were told their separation dates would be in the fall.
Some told News 5 that the experience with Hyland's layoffs may dissuade them from pursuing future tech careers.
"It would make sense to pursue something there, but also the last couple of years in tech, it’s kind of left a sour taste," Keith said. "It’s a very volatile industry that can change on a dime, as we’ve seen this year.”
Hyland Software describes itself as “a leading content services provider with a range of cloud-based technologies, solutions and services.” The company says more than half of the 2020 Fortune 100 companies used Hyland products, and some of Hyland’s primary customers include healthcare organizations, local, state and federal governments, financial institutions and insurance companies.
The company has over 35 offices across the U.S. and the world, but Hyland’s global headquarters is in Westlake.
In 2018, the company expanded its Westlake headquarters, adding 330 jobs and constructing a 70,000-square-foot addition to add space for 400 additional offices. It was the second time in four years the company expanded its global headquarters.
RELATED (from 2017): Hyland expands its global headquarters in Westlake, adding 330 jobs this year
Watch live and local news any time:
Download the News 5 Cleveland app now for more stories from us, plus alerts on major news, the latest weather forecast, traffic information and much more. Download now on your Apple device here, and your Android device here.
You can also catch News 5 Cleveland on Roku, Apple TV, Amazon Fire TV, YouTube TV, DIRECTV NOW, Hulu Live and more. We're also on Amazon Alexa devices. Learn more about our streaming options here.
