Web services provider New Relic said Thursday it plans to eliminate 110 jobs, 90 of them in the US, to “focus its resources on top priorities.” It’s the latest in a string of layoffs in Oregon and Southwest Washington.
New Relic said it will record up to $9.3 million in costs associated with the layoffs and other restructuring expenses. The cuts represent approximately 5% of its workforce.
New Relic’s software helps organizations monitor visits to their websites and online tools, information clients use to optimize their performance. The company made a series of big changes to the organization over the last two years, replacing its CEO and revamping its pricing model in an effort to improve its financial performance.
New Relic’s headquarters are in San Francisco but its engineering office is in downtown Portland. The company has long been among the city’s largest technology employers, with as many as 600 workers assigned to its offices at the US Bancorp Tower.
The shift to remote work may have changed that tally. New Relic did not immediately respond to a question Thursday about how many it currently employs in Portland or how Thursday’s layoffs will impact operations here.
New Relic shares fell 2.7% in early trading Thursday, to $65.27. The stock has traded between $41.66 and $129.70 in the past year.
Many tech companies have laid off workers or cut back on hiring in recent weeks in anticipation of leaner economic times. Portland tech firms Puppet and Smarsh have both laid off workers this summer, and HP Inc. furloughed contract manufacturing workers in Corvallis last month.
In Vancouver, biotech company Absci rolled back a hiring spree by laying off a few dozen workers last week.
Oregon unemployment remains at a historic low of 3.5%, although, and some technology companies are talking expansion rather than cutbacks.
Chipmakers and semiconductor equipment manufacturers continue hiring apace amid an ongoing shortage of certain types of computer chips. SEH America said this month it plans to add 300,000 square feet of factory space to its Vancouver silicon wafer factory.
— Mike Rogoway | [email protected] | Twitter: @rogoway | 503-294-7699