WESTLAKE, Ohio — Hyland is laying off approximately 1,000 employees -- 20 percent of its workforce -- the Westlake-based technology company confirmed to 3News.
In a letter to employees that was also posted to the company's website, Hyland President and CEO Bill Priemer called the move "the hardest change we've ever had to make."
"We are restructuring our organization. We are removing layers of management, adjusting team sizes and reassigning responsibilities across departments and levels. These changes will reduce the size of our team by about 1,000 employees, which is approximately 20% of our workforce," Priemer wrote. "I recognize and understand the gravity of this decision and the impact it will have on our friends and colleagues who will be leaving. I take responsibility for the decisions we are sharing today, and I realize how difficult this is for you all."
Priemer went on to explain that all U.S.-based employees would receive an email regarding their status with the company. Those affected by the layoffs would receive an invitation to a Zoom webinar to explain the offboarding process, including information about severance, healthcare coverage and outplacement services. The process will take longer for employees outside of the U.S., Priemer explained.
As for the reasoning behind the layoffs, Priemer cited the "global economic situation and shifts in our market" as Hyland transforms into a cloud company.
"This effort has required substantial investment in both people and systems," he wrote. "While we had planned for this investment, we did not anticipate the degree to which inflation, rising interest rates and wage increases would impact our expenses. Furthermore, the challenging economic climate we currently face is prompting many organizations to pull back on their technology expenditures.
"After much deliberation with our board and senior executive team — and despite enacting significant cost-cutting measures such as hiring freezes, travel restrictions and reductions in discretionary spending — we determined that streamlining the organization, both operationally and financially, is necessary to ensure Hyland’s long-term success."
Hyland's latest layoffs come more than two years after it laid off 100 employees from its product delivery team in January 2021.
"This is disappointing news, but I also understand business and I understand competition," Westlake Mayor Dennis Clough told WKYC. "Based on what I was informed, this is all about being more streamlined and making sure they're able to adapt quickly in the marketplace."
Clough says Hyland is one of the largest employers for the city alongside University Hospitals St. John Medical Center and American Greetings, the latter of which also had layoffs in 2018. The mayor adds majority of the city's revenue comes from income tax.
"The good thing is right now, at this point in time in the short term, the city of Westlake is financially solid, and we will be able to continue to provide the quality services to all of our residents," Clough said. "That's the good news. What this means in the future? It's anyone's guess."
The software company had previously made the Forbes best employers list, with amenities like a salon and child care.
"It's been a very good company to work for," Clough noted, "and in a way, it's a shame to see that they can't continue to grow like they have been over the years."