Sprinklr, a US-based company providing a customer experience management platform to global brands, has laid off approximately 15% of its workforce, equivalent to around 500 employees, citing business performance that failed to meet expectations.

This latest round of layoffs comes less than a year after the company cut about 3% of its workforce in May and a 4% reduction in headcount earlier in 2023, which impacted roughly 200 employees altogether. The New York-headquartered company, which boasts over 1,800 global customers including Microsoft, P&G, and Samsung, started notifying affected employees about the cuts this week.

In a statement, a Sprinklr spokesperson explained that the company will "refocus and rebalance our investments, talent, and resources in order to better serve our customers and partners and help them realize the full value of our AI-powered platform." The spokesperson confirmed that the move does not impact C-level positions and that the company will "continue to hire in prioritized areas" to focus on its "strategic priorities."

Interestingly, the layoffs coincide with Sprinklr's recent appointment of former PwC partner Jan Hauser and former Lenovo CEO and C3.ai founding member Stephen Ward as new board directors. The company is shifting its focus toward developing AI-led experiences, which may have contributed to the decision to restructure its workforce. Additionally, current board member and audit committee chair, Ed Gillis, who has served since November 2015, is stepping down from his position at the end of March.

According to its most recent annual report released in March of last year, Sprinklr had 3,869 employees, including 2,276 in India and 787 in the U.S. The company has expressed its commitment to supporting departing teammates, acknowledging their contributions to Sprinklr and assisting them in their transition.

Sprinklr is not alone in its struggles, as several other companies, including Workday, Okta, Sonos, and Cruise, have also announced job cuts in recent days. This trend suggests that businesses are facing significant challenges amid dynamic shifts in the market, prompting them to reevaluate their operations and make difficult decisions to ensure long-term sustainability.

The layoffs at Sprinklr serve as a reminder that even established companies with a strong customer base can face difficulties in today's fast-paced technology landscape. As the company moves forward with its restructuring efforts, it will be important to monitor its progress and assess how these changes impact its ability to deliver AI-powered experiences to its customers.