Outreach cuts 9% of workforce in latest layoffs at Seattle sales automation startup

Outreach is trimming its headcount, laying off 9% of staff in another cost-cutting move.

A company spokesperson confirmed the latest layoffs, which impacted more than 65 employees globally, mainly in go-to-market roles.

Outreach is offering impacted employees severance, benefits, and career counseling.

The company is not closing any offices. It now has 680 employees.

Outreach has gone through multiple rounds of layoffs over the past few years, including a 12% cut in September 2023.

Layoffs hit the tech industry hard during 2022 and 2023 amid higher interest rates and more cautious spending. More than 260,000 tech employees were laid off last year, and more than 143,000 were cut this year so far, according to Layoffs.fyi.

Founded in 2014, Outreach has more than 6,000 customers including Zoom, Twilio, and McKesson. It aims to help companies improve their seller workflows and win more deals.

Outreach competes with other sales engagement companies including Salesloft, Apollo, and Clari. Tech giants such as Microsoft and Salesforce offer their own products aimed at streamlining and automating sales processes.

The impact of the generative AI boom is a big topic in the sales automation sector.

Outreach has raised nearly $500 million and reached a $4.4 billion valuation after raising $200 million in 2021. It is ranked No. 1 on the the GeekWire 200 list of privately-held tech companies in the Pacific Northwest.

Outreach co-founder and former CEO Manny Medina stepped down in September. Abhijit Mitra, who joined the company last year as its president of product and technology, replaced Medina as Outreach’s new CEO.