Minneapolis tech company Jamf announces layoffs

Minneapolis-based software company Jamf announced Thursday it will cut its full-time workforce by 6%, affecting nearly 170 employees.

The company, which provides Apple device management and security functions to large corporations, employed 2,796 people at the end of 2022, according to its most recent annual report. Of those employees, 1,736 were employed in the U.S. with 1,060 employed outside the country. Roughly 30% of its employees work in tech-specific roles. The specific positions being eliminated were not disclosed.

The plan, aimed at reducing operating costs and improving profitability, comes at a price. The company estimates it will incur losses between $6.6 million and $8.2 million in severance payments, employee benefits and other related costs. The costs will be absorbed this quarter, with layoffs completed by the end of the second quarter, according to a disclosure filed with the U.S. Securities and Exchange Commission.

Through the first nine months of 2023, Jamf generated $409.9 million in revenue, up from $348.4 million in the year-ago period. The company lost $92.6 million, or 74 cents a share, in that nine-month span, compared with a loss of $120 million, or $1 per share, for the same period in 2022.

The software company, which is expected to announce its fourth quarter and full-year earnings on Feb. 27, has projected ending 2023 with between $557.9 million and $558.9 million in revenue. The company’s stock slid nearly 2% in trading Thursday, closing the day at $19.40 a share.

Despite the workforce reduction, John Strosahl, the company’s chief executive, has said the business is poised for growth in 2024 given its market position as the only security and management platform for Apple products across corporate enterprises. Its customer base includes 14 of the 15 largest U.S. banks and seven of the nation’s top 10 technology companies.

“In today’s rapidly evolving work environment and challenging economic conditions, businesses want to consolidate and simplify with a modern approach to device management that integrates security to close gaps and doesn’t compromise end-user experience,” Strosahl said in a recent statement.