Thoughtworks Layoffs 2023 – Does Thoughtworks Pay Well?

Are there Thoughtworks layoffs? This year, many big tech companies have announced layoffs. No industry is left unscathed. Now, the software consultancy firm Thoughtworks Inc. also joined the category. At the start of the year, the firm announced to lay off 4 percent of its global workforce. 

It counted around 500 workers. Besides, consultancy firms such as McKinsey also joined a bandwagon of layoffs. Companies are looking to reduce their workforce amid a sobering economic outlook. 

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Is Thoughtworks Laying Off Employees?

Is Thoughtworks Laying Off Employees? Amid the ongoing layoff trend. Thoughtworks has emerged as the latest tech company due to the global economic slowdown. According to recent reports, the software consultancy firm announced layoffs. The firm laid off about 4 percent of its global workforce. It has approximately 500 employees. 

The company said it has already informed its affected employees about the decision. Moreover, ThoughtWorks planned to continue laying off employees in the coming days.

Linda Horiuchi, a global public relations head at Thoughtworks, emailed. “We are going to reduce our workforce by 4 percent worldwide. We know it is a difficult decision but a necessary one.” 

They added, “We are not saying it is easy to decide. We did not make it lightly. It is so regrettable for us to say goodbye to our talented and passionate Thoughtworkers. However, these changes are important. As it plays a crucial role in supporting the future growth of our business.”

Thoughtworks operates its offices in 18 countries on five continents. It includes Latin America, Europe, Asia, Australia, and the United States. It has more than 12,500 employees around the world. One of the spokespeople confirmed the company’s presence in India. But Thoughtworks did not make a decision to lay off employees in India.

Reportedly, ThoughtWorks generated an 8.3 percent year-over-year surge in quarterly revenue. It counts more than 310 million US dollars. The company’s revenue growth in the fourth quarter impacted its net income. It is believed that the net income generated by the company is 16.1 million US dollars. In the same period last year, ThoughtWorks lost approx 17 million US dollars.

This year, ThoughtWorks traded at 7.34 US dollars per share with approx 2.29 billion US dollars of market cap. The Chicago headquartered Thoughtworks predicted that it may generate revenue in the current quarter, i.e., around 303 million US dollars to 305 million US dollars. It is expected to ensure growth in revenue of between 0.5 percent and 2.5 percent for the whole year. 

According to recent reports, as of June 30, the company had announced a cut of job roles. This time, the cut is about 5 percent to 6 percent. It counted approx 600 to 700 jobs. The Securities & Exchange Commission reports say Thoughtworks has 11,574 employees now. On the contrary, the company’s official website indicated that it had more than 11,500 workers as of June 30.

There are plenty of reasons why tech firms lay off employees. Generally, companies laid off hundreds or even thousands of workers this year. But a few and the most common reasons are as follows:

  • High-Interest Rates
  • Macroeconomic Instability
  • Brace for a period of lower demand

According to recent earning reports, the company predicts first-quarter revenue. It predicted that there would be a decline of around 5 percent to 5.5 percent. A decline in revenue is way more than analysts expected. Analysts forecasted that it might decline by 2.3 percent. The company’s shares decreased by 3.3 percent to 7.12 US dollars.

What Kind Of Company Is Thoughtworks?

ThoughtWorks is a global technology company founded in 1993 by Neville Roy Singham. It is a publicly-owned company that offers software design services. Besides, it provides software delivery, tools, and consulting services. It operates 49 offices in 18 countries.

Thoughtworks contributed to open-source products. It is also related to the movement for agile software development services. The company includes: 

Digital Experience, Digital Product Development Services, and Distributed Agile Software Development.

In 2009, ThoughtWorks introduced its Social Impact Program. For Non-Profits organizations, Thoughtworks’ Social Impact Program offered:  

Pro-bono or other developmental help with its socially driven missions. It has clients which include:

  • Content Delivery Site – Democracy Now Mobile 
  • Mobile Data Collection – Human Network International 
  • SMS-based Fertility Planner – Institute for Reproductive Health 

Thoughtworks also provided software engineering services for Grameen Foundation’s Mifos Platform in 2010. To help refugees and field workers, it communicates more effectively and confidently. The company offers an open-source Android app – Translation Cards. 

Later, Mercy Corps created an app with the partnership of Thoughtworks and UNHCR with the help of Google volunteers.

Does Thoughtworks Pay Well?

Based on employee reviews, ThoughtWorks rated 4.1 out of 5. According to some employees, it is a great place to work. Thoughtworks also pays its employees well. Below you can check the average salaries of employees at Thoughtworks:

  • Thoughtworks pays its Senior Software Engineers an average of 132,152 US dollars annually.
  • Data Engineer’s average salary is 177,397 US dollars a year.
  • Business Development Manager’s average salary is 205,234 US dollars a year.
  • Software Development Department:

Application Developer receives an average salary of 114,392 US dollars a year.

  • Principal Consultant’s average salary is 142,252 US dollars a year.
  • Director’s average salary is 199,800 US dollars a year.

Moreover, the average Thoughtworks Salary ranges: 

Between 45,140 US dollars a year to 220,470 US dollars a year. The company offers hourly pay ranging from 19.34 US dollars to 28.84 US dollars per hour. 

The lowest average salary is offered to Talent Coordinators a year. At the same time, the highest-paid job role is Principal Program Manager. This data has been directly gathered from the users and employees. Also, from the past and present job advertisements in the past three years.

Why ThoughtWorks Is Different?

Unlike other companies, ThoughtWorks works in three main areas. These areas are transparency, openness, and unsettling people and processes. But the company targets primarily transparency and openness.

So, the company works with an open-door policy. That’s why ThoughtWorks distinguishes itself from other companies. 

Thoughtworks militarily run its company. This is why employees do what they are told with no multiple questions.

It offers chances for employees that they can chat. Due to this, they anticipate that their opinion matters in the company’s decision. 

Is ThoughtWorks Better Than TCS?

Suppose we compare ThoughtWorks to TCS. Then it noted that ThoughtWorks is way better than TCS in terms of:

Overall Rating, Diversity and Inclusion, Senior Management, Compensation & Benefits, Culture and Values, Career Opportunities, and Work-Life Balance. Let’s compare both of them. Based on customers’ and employees’ reviews.

  • Thoughtworks’ overall rating is 4.4. At the same time, TCS’s overall rating is 3.9 out of 5.
  • Thoughtworks has higher culture & values with a rating of 4.5. At the same time, TCS’s rating is 4.0 out of 5 in this area.
  • ThoughtWorks has a higher rating of 4.7 in Diversity and Inclusion. At the same time, the TCS rating is 4.1 out of 5.
  • Thoughtworks rating is 4.4 in Work-Life Balance. At the same time, TCS’s rating in this area is 3.9 out of 5.
  • Thoughtworks’ rating is 4.2 in terms of Senior Management. At the same time, the TCS rating is 3.3 out of 5.
  • Thoughtworks’ rating is 3.9 in the area of Compensation & Benefits. At the same time, the TCS rating is 3.2 out of 5.
  • Thoughtworks rating is 4.3 in Career Opportunities. At the same time, the TCS rating is 3.7 out of 5 in this field.
  • Based on employees’ reviews, Thoughtworks can be an excellent workplace. A majority of workers recommend Thoughtworks rather than TCS to their friends.

ThoughtWorks is more recommendable than TCS. We have gathered the information after considering numerous employee ratings.

Moreover, Thoughtworks employees rated their Positive Business Outlook. The company’s Positive Business Outlook is better than TCS’s by 11 percent.

Who Are The Main Competitors Of ThoughtWorks?

After considering genuine user reviews on competing tools, thoughtworks is one of the best software consulting firms. Below we have compiled a list of companies that are similar to Thoughtworks. Or you can also consider these companies the best overall competitors of Thoughtworks.

  • Accenture – It is a consulting and Implementation firm that rated 4.2 out of 5.
  • IBM Consulting Firm – It is also a consulting and Implementation firm with an overall rating of 4 out of 5.
  • Nasstaf Solutions and Managed Services – The organization has an overall rating 4.3. It is a presence-driven firm. It helps dynamically send out and create customized surveys for every individual.
  • Cognizant – Consulting and Implementation firm with an overall rating of 4.2.
  • Navisite Services – A managed cloud service that helps in boosting IT transformation. It has an overall rating of 4.6.
  • Deloitte Consulting Firm – It is a professional service network and accounting firm. It has an overall rating of 4.1. It provides consulting, financial advisory, audit, tax, and enterprise risk services.
  • 8X8 – The firm that offers cloud phone, collaboration, meeting, and contact center solutions. It has an overall rating of 4.1.
  • InfoObjects – A consulting firm that helps companies to transform their infrastructure. It has an overall rating of 4.9.
  • TataConsultancy Services – It is a Salesforce Consulting and implementation servicing firm. With an overall rating of 4.5.
  • CyberArk – It is a security firm. It mainly focuses on cyber threats. The company has an overall rating of 4.6.

Final Verdict

The Chicago-Illinois-based software company integrates software engineering. It helps enterprises, design, strategy, and technology disruptors. To build modern digital businesses worldwide.

This global technology consulting firm ThoughtWorks laid off employees this year. As the company said, these changes are essential to support the future growth of our business. The firm helps other firms to digitize their operations.