A version of this post was shared with Zapier employees on June 28, 2023.
In order to position Zapier to succeed in the years ahead, I am sharing the hard news that we are reducing the size of our current team by about 10%. We came to this decision as an executive team, with input from the board, but ultimately the final decision is mine. In this post, I'll share why we've made this decision, how we're supporting departing teammates, and the path forward.
Why we're doing this
Zapier has been profitable and cash flow positive for a long time. We've talked openly about our financial strength. So why would we do this? What's changed?
We're facing a different set of competitive challenges than we've faced in the past.
Economic headwinds have made certain investments less sustainable.
The emergence of AI and LLMs has changed where we need to invest.
As a result, we are overstaffed in some areas and understaffed in other areas. Zapier can play a vital role in how the world uses AI to automate their work, but to meet the moment we must act.
Generative AI has important implications for Zapier and the entire software world. We're already feeling the tailwinds: our AI integrations and features are being received with exuberance from the automator community thus far. But AI is advancing faster than ever, and to match the pace, it's urgent that we shift our focus toward early product development and AI.
What we're doing
1. We are reducing the size of our current team by roughly 10%. Reductions span all departments, though not equally so. We've focused reductions on roles that are less directly related to what we now know is needed based on our strategy and goals. To minimize the number of teammates impacted, we've shifted team members wherever possible from roles of declining relevance to roles of growing relevance.
2. We've trimmed non-essential, non-headcount spend. Examples include being more selective about large, in-person team events, consolidating perks such as our office setup and education budgets, and streamlining the vendors and software tools we use.
3. We are flattening our org structure to consolidate management responsibilities, and to free up capacity to build for and serve our customers. Some teams will be merged, and some managers will be asked to take on individual contributor (IC) roles, with no change in salary. If you are a manager whose role will transition to an IC role, you can expect details from your department's exec by the end of this week.
How we're handling departures
In most cases, teammates departing Zapier will wrap up their work today and will have limited Slack access through the end of today. If your role is affected, you'll meet today with a senior leader to talk through this news.
While there is no perfect way to say goodbye under these circumstances, we will support affected Zapier teammates in the following ways:
Cash severance: We are providing cash severance of at least 12 weeks base salary, and we are waiving all sign-on bonus provisions.
H1 bonus: Departing teammates will receive their full H1 bonus.
Healthcare: For teammates who are enrolled in benefits through Zapier, we will provide the cost of certain employer-provided benefits for the same number of weeks as the base salary severance or a continuation of coverage for the same time period.
Accelerated options vesting: We will round up vested options to the next vesting event and will remove the one-year vesting cliff for anyone who has not yet reached their first year of service.
Job placement support: Zapier's Next Play Program, staffed by leaders within our Talent Acquisition team, is ready to support affected teammates with their job search.
Office equipment: Departing teammates will keep their office equipment, including laptops.
Our focus for today
Our focus as a company today is supporting departing teammates and answering questions with our remaining team.
For those whose roles are not directly affected: there will be questions, concerns, and some degree of confusion in the days ahead as we navigate a lot of change at once. Please ask questions; they will help align us on where we are and where we're going.
In keeping with our Default to Transparency value, I commit to open lines of communication during this transition. To help with this, we are hosting the following in the coming days for everyone staying with Zapier:
All-company town halls—two editions to ensure global time zone coverage—to ask questions with our exec team
A briefing with all Director+ leaders, including Q&A
Exec follow-up in team channels with department-specific context
Looking ahead
To Zapier teammates who are leaving: I'm truly sorry for the impact this will have on you and your family. I appreciate everything you've done for Zapier. I hope the experiences you've had here can help you catapult into your next opportunities. We will do anything we can to help with these transitions. For folks who have worked directly with our exec team, we have all committed to place phone calls, provide references, and help source job opportunities.
To everyone staying with us for our next chapter: this is hard news to digest. Take the time to process individually and with your team. Building an enduring future comes with difficult choices, and today marks the hardest day in Zapier history. Despite the challenges this period will bring, Zapier's future remains bright.
- Wade
