Sitecore Cuts Global Workforce

3 minute read
Dom Nicastro avatar

Just eight months after predicting continued "expansion of its global footprint" of about 900 employees, Sitecore is cutting jobs.

In a phone interview, a US-based spokesman for the Copenhagen-based web content management (WCM) provider said the company executed a “modest workforce reduction." While he did not quantify "modest," multiple sources with knowledge of the cuts told CMSWire the reductions affected between 100 and 150 employees, mostly in Europe.

“Sitecore is currently reorganizing its global team to position the company for continued success,” the spokesman told CMSWire. “This has resulted in a modest workforce reduction globally.”

Sitecore provides web content and customer experience management solutions, including a Web CMS platform ranked alongside Adobe's as a leader by Forrester Research.

Growth, Profitability in 2014

Sitecore is privately held and has not disclosed financial or personnel reports this year.

But last November, it announced more than 35 percent year-over-year topline growth and profitability for the fiscal year ending June 30, 2014. It also noted that a significant investment in 2011 by private equity and venture capital firm Technology Crossover Ventures of Palo Alto, Calif. “enabled consolidation of Sitecore’s global operations,” although it also stated it was poised for growth.

Randy Woods, president of Sitecore senior partner Nonlinear Creations in Toronto, Ontario, told CMSWire he sees no slowdown in adoption of Sitecore technology. He noted there is an “enormous amount of work available and new licenses being sold all the time at a rate that’s really impressive.”

Learning Opportunities

“We’re not seeing a slowdown in adoption rate,” Woods added. “If anything it’s accelerated. The demand toward services from new Sitecore acquirers continues to grow. We’re all scrambling to find really good people because you need them to deploy.”

In its Web CMS Wave earlier this year, Forrester Research rated only Adobe ahead of Sitecore. Sitecore, a "strong performer" in the 2013 Web CMS Wave for Forrester, earned a spot as a leader in the 2015 report. Forrester analysts noted the company "has a strong product and high growth."

Sitecore’s Web CMS platform was also a leader in Gartner’s latest Magic Quadrant, which impressed analysts for its "completeness of vision."

Sitecore announced last month it will embed Netbiscuits Device Detection library into its content management system, replacing its current detection solution. The library, according to an official at Netbiscuits, will help Sitecore’s global customer base "deliver customized web and mobile experiences which are optimized for the requesting devices' hardware, browser and operating system characteristics.” 

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