Veeam layoffs hit 300 as company vows to hire 500 this year

The layoffs will affect employees in sales, marketing and administrative capacities

Data protection technology developer Veeam Software is in the process of a round of layoffs affecting 300 employees in sales, marketing and administrative capacities.

However, the Ohio-based company, which has more than 5,000 employees, also plans to increase its engineering and development payroll by nearly 500 workers this year.

A Veeam spokesperson confirmed that 300 employees were impacted by the cuts but declined to discuss details about which areas saw layoffs.

However, the spokesperson, in response to a CRN request for more information, sent a prepared statement from Matthew Bishop, Veeam's chief operating officer.

"2023 was Veeam's best ever year in terms of market share - now #1 in the global market - growth and profitability," Bishop said in the statement.

"Like any successful company, during annual planning Veeam makes decisions to prioritise investment areas reflecting the evolution of the business and the market.

"We don't publicly disclose confidential business plans but we can share we're ramping up hiring in some areas, transitioning some roles to new teams and retiring other roles.

"Our primary focus today is providing the best possible support to those Veeam employees impacted by the changes and assisting them to find their next career opportunity."

The spokesperson also said that Veeam plans to hire nearly 500 new engineering and development roles in 2024.

The layoffs affected a variety of employees, according to LinkedIn. One senior campaign manager took to the social media site to say that she "was recently affected by organisational restructure, and as a result, my position - along with roughly 300 of my colleagues - was eliminated."

An inside sales representative posted that "[u]nfortunately, my time with Veeam has come to a close. I will not forget the friendships and memories I have made while there. Veeam holds the best people, I will always say that."

While layoffs are painful for the people involved, what's happening at Veeam is a positive for the company, said Bob Panos, vice president of sales and services a American Digital, an Illinois-based solution provider and long-time Veeam channel partner.

Panos told CRN he had heard that Veeam is reorganising, and getting rid of redundant jobs as a way to position the company for the future.

"Veeam is getting ready to move to a subscription model," he said.

"The company is maturing."

The shift of employees to more of an engineering and development focus comes about three years after Veeam was acquired by private equity company Insight Partners in a transaction valued at about $5bn.

Since then, there has been plenty of buzz about a potential IPO, but no concrete information from Veeam about IPO plans.

O'Ryan Johnson and David Harris contributed to this article.