Tech Layoffs: Lucid Software Cuts 7% Of Staff Weeks After Obtaining FedRAMP Authorization

Lucid Software has laid off 7% of its staff amid the company's efforts to cut costs. The workforce cuts come about two weeks after the software company became the first visual collaboration platform available on the FedRAMP Marketplace.

"We are reducing the size of our team by about 7%. While the reductions span many groups within the company, we did not reduce all functions equally across the board," Lucid CEO Dave Grow said in a letter to employees Monday. The layoffs will affect around 75 employees, he said.

Grow added that the Utah-based software company has been "very deliberate" in its rebalancing strategies, as it wants to ensure it is invested in projects that will help Lucid thrive. In areas where Lucid is "over-invested" in, some teams will be merged "where there are opportunities to run more efficiently."

As part of the company's cost-cutting efforts, non-headcount spending will be reduced, including in-person company events, streamlining purchases and optimizing overall expenses.

Departing employees will be provided with a minimum of 10 weeks in severance pay, full third-quarter commissions, health care benefits through the end of 2023, laptops for job searching (optional) and one-on-one support for employees on a work-sponsored visa.

"Building a great future for Lucid comes, at times, with difficult decisions like we have made today. Though we face challenges, Lucid's future is as bright as ever, with enormous opportunities in front of us," Grow concluded.

Layoffs at Lucid Software took place less than two weeks after the company revealed it achieved the "authorized" designation for the Federal Risk and Authorization Management Program (FedRAMP), marking the first time a visual collaboration platform was made available on the FedRAMP Marketplace, where government agencies look up cloud-based solutions.

Companies receiving an authorized designation by the FedRAMP means they have completed a rigorous set of security standards that aim to protect federal data in the cloud. The FedRAMP has 27 applicable laws and regulations involved, as well as 26 other standards and guidance documents for companies that make it one of the world's most meticulous cloud service certifications.

"Getting FedRAMP authorization is serious business," Hootsuite said.

"Achieving FedRAMP Authorization is a significant milestone for Lucid, which validates the security and reliability of our platform. We're excited to help facilitate digital transformation across the public sector and improve how government teams and contractors collaborate," Grow said earlier this month.

Lucid joins a growing number of software companies laying off employees amid a tech reckoning that kicked off during the second half of 2022.

India's Chargebee cut 10% of its workforce earlier this month amid "market shifts," while Pegasystems, which previously reduced its staff by 4% in January, implemented another 4% workforce cut at the beginning of the month.

SkyKick, which has been in a legal battle with British media and telecoms giant Sky for seven years, announced more than 180 in layoffs late in August.

In the greater tech space, more than 236,800 employees have lost their jobs, as per layoffs tracker layoffs.fyi.