Teradata Layoffs – Employee fear has been exacerbated by a lack of clarity over the future of some companies’ employee initiatives. Employees at Teradata Corp. and a few other businesses are uncertain in 2023 as a result of rumors of upcoming layoffs.
Teradata Corp. terminated its employees in 2019 and 2020, according to historical data. White-collar and factory employees were both affected at that time. However, there is no recent data available about Teradata layoffs. The survey estimates that Teradata employs 8,535 people.
The American software provider is Teradata Corporation. It offers cloud database and analytics-related software, goods, and services. The company was established in 1979 in Brentwood, California. The company was launched as a result of a partnership between Caltech researchers and the advanced technology division of Citibank. Let us learn about this company and its potential layoffs in this article.
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About the company
Teradata is an enterprise software firm that creates and sells database analytics software. The three core services offered by this company are consultancy, cloud products, and business analytics. It conducts business in Asia, Europe, the Middle East, North and South America, and Africa. It provides data warehousing and big data analytics services.
The company’s main office is in San Diego, California. Teradata also has a major U.S. presence in Atlanta and San Francisco, where its data center research and development is located. Under the ticker code TDC, it is listed for public trading on the New York Stock Exchange (NYSE). Ever since Teradata became a stand-alone public company in 2008, it has acquired many businesses. Since 2020, Steve McMillan has been serving as the company’s president and CEO.
Teradata laid off 80 San Diego workers in 2019
In 2019, Teradata Corp., a leading provider of data analytics software, found itself faced with substantial change and turbulence. The business relocated its main office from Dayton, Ohio, to San Diego. So, it has been in the news because of many significant events. This includes the CEO’s departure, job cuts at the San Diego headquarters, and changes to the company’s business plan.
Oliver Ratzesberger, the CEO of Teradata, announced his departure on November 7, 2019, just 11 months into his position. Analysts and investors were shocked by this sudden shift in leadership. This had raised concerns about the company’s prospects.
The board of directors and Ratzesberger were said to have mutually agreed to part ways. Victor Lund, who had previously led Teradata, took over as interim CEO. Concerns have been raised regarding Teradata’s ability to meet its issues as a result of the abrupt change in leadership.
The company’s stock price significantly declined. It fell from $37.75 to $26.27 during November 2019. Despite a slight recovery, it was well below its former highs. The decrease in Teradata’s stock price was attributed to its financial performance. Since it showed a solid third quarter but a disappointing fourth-quarter forecast in 2019. The transition in leadership was unplanned, which increased the turbulence.
The modifications affected all of the Teradata workforce. The company indicated that there were no more employment cutbacks planned for the San Diego region at the time. But about 80 people were let go at its San Diego headquarters. Around 1,000 people were employed by Teradata in Southern California in 2019. The layoffs were part of a larger attempt to more closely align the company’s resources with its changing business plan.
The transition of Teradata’s data analytics software to a cloud-based subscription model, or software as a service (SaaS), is one of the primary factors affecting the company’s financial success. The business formerly sold its software through a licensing arrangement. But, the new SaaS strategy has taken its place.
The fact that there have been fewer significant licensing transactions has had an impact on overall revenue. Thus, this transformation has not been without its difficulties.
Despite these changes, Teradata was dedicated to its support of the San Diego neighborhood. It had added about 300 employees there in 2019. The management of the company highlighted that they had not made these choices carelessly. They also claimed that they were aware of how they would affect employees and their families.
The business announced a plan to reduce its employment. It was projected to cost $20 million to $25 million, primarily in employee severance. Based on filings with federal regulators, over half of these payments will be used for Teradata’s international staff.
The business predicted adjusted earnings of about $1 per share, down from $1.29 in 2018. Also, it expected full-year revenue of $1.9 billion, down from $2.16 billion in 2018.
According to a statement the firm provided to the Dayton Daily News,
“Based on the rapid growth of the technology market, Teradata must consistently evolve. This is to execute its strategy with the highest speed and efficiency.” “As part of our annual planning cycle, we decided that it is essential to align our resources and investments with that goal. This is in order to achieve a successful 2020. As a result, a very small number of roles have been eliminated around the company. We will rebalance our teams to meet the demands of the business.”
In summary, Teradata went through a time of change marked by leadership changes, layoffs, and a change in business strategy. These changes have raised concerns about the company’s potential performance and strategic positioning in the competitive technological sector. Teradata concentrated on overcoming these obstacles. It also attempted to uphold its commitment to the San Diego community and its presence there.
Companies are required to notify the government of layoffs. This is done in order to prevent fraud with regard to unemployment benefits. From these filings, which are hidden in PDFs, various websites extract data. Based on that, the company also laid off about 85 employees on October 26, 2020. But, no detailed information is available on the online platform.
Is Teradata’s stock falling?
After the firm released its second quarter results for 2023, shares of Teradata dropped 6.8%. The business had fallen short of analysts’ projections for billings and operating income. While the gross margin declined, free cash flow was also disappointing. It was lower than both the prior quarter and the same period last year. The results were probably also affected by Alteryx’s poor revenue report. ARR, revenue, and non-GAAP operating income all fell short of estimates for Alteryx’s third quarter.
Positively, during the quarter, revenue and ARR (annual recurring revenue) exceeded forecasts. The firm maintained its full-year projection. It provided comparable non-GAAP EPS guidance for the next quarter. TDC had a poor quarter, with the business falling short of analyst expectations for certain key indicators of performance.
Large price decreases might be attractive buying opportunities when the stock market overreacts to the news. This often happens. In comparison to the market average, Teradata’s shares are not particularly volatile. In the past year, they have only had four moves higher than 5%.
Although Teradata has increased 41.7% since the start of the year, its share price was 17.6% below its 52-week high, which occurred in July 2023 at $57.41. Five years ago, investors who paid $1,000 for Teradata shares would have looked at a $1,170 investment in August 2023.
Rumors and a lack of information raise staff discomfort
Employees at Teradata Corp. are nervous about their jobs in 2023 due to rumors of probable layoffs. Recent events serve as an awakening of the delicate balance between business growth, shareholder value, and employee well-being. It’s because the business landscape continues to change.
The human cost of these actions continues to be an important problem. It happens despite businesses’ attempts to streamline their processes. As we advance into unknown territory, it is clear that the long-term effects of these cutbacks on the overall economy will be widely watched.
The past few weeks have seen the announcement of staff reductions by several big companies. It was due to ongoing economic difficulties and changing industry dynamics. Employee anxiety and fears about the future of the affected industries have increased as a result of the layoffs.
Employees across a range of industries are struggling with worries about their job security. They worried about the uncertain future as businesses struggled with these difficult decisions. The business world has been shocked by the news of layoffs and potential job losses. This has sparked conversations about the economic environment and the need for flexible tactics to withstand difficult times.
Conclusion
As of now, there have been no layoffs announced at Teradata Corp. for 2023. But, the latest wave of layoffs and cost cuts in the industry raises questions about the state of the global economy as a whole. Also, the challenges facing industries trying to adjust to changing market dynamics are questioned. Analysts and experts will be closely monitoring these companies’ Q4 estimates and any potential cascading effects on linked sectors.
