New roles will be created in cost-effective, high-talent geographies over time.

Edward Gately, Senior News Editor

January 25, 2023

2 Min Read

PagerDuty has confirmed layoffs impacting 7% of its workforce as part of its ongoing efforts to drive efficient growth and expand operating margins.

PagerDuty announced the layoffs in a U.S. Securities and Exchange Commission (SEC) filing. According to its last annual report, the company had 950 employees. About 71% were in the United States and 29% were in its international locations.

PagerDuty is reallocating certain roles and realigning teams to continue to improve operational resiliency and agility. It’s also rationalizing its real estate footprint. The immediate impact is a 7% reduction in headcount in the near term.

PagerDuty will eliminate some roles and create new ones in cost-effective, high-talent geographies over time.

In addition, Jeremy Kmet, PagerDuty‘s senior vice president of North America sales and customer acquisition, is being appointed senior vice president of global field operations. Dave Justice, chief revenue officer, is leaving the company to pursue other opportunities after the financial year end.

Committed to Continued Revenue Growth


PagerDuty’s Jennifer Tejada

Jennifer Tejada is PagerDuty’s chair and CEO.

“We are committed to continuing to grow PagerDuty’s revenue more than 20% year-over-year even in an uncertain economic environment,” she said. “At the same time, we remain committed to continue the trend of significantly improving our operating margin, at least at the same level of improvement as fiscal year 2023, balancing growth and profitability. These planned changes are designed to reinforce our go-to-market (GTM) execution, improve operating margins and enable us to continue to operate from a position of strength. While any action that impacts our employees is difficult, we are confident this is the right path forward for our company over the long term. I want to thank all of our departing employees for their hard work, significant contributions and commitment to our customers.”

PagerDuty expects to incur $5 million to $7 million in non-recurring charges in connection with the layoffs. Those will primarily consist of severance payments, notice pay (where applicable), employee benefits contributions and related costs.

For its third quarter of fiscal year 2023, PagerDuty reported $94.2 million in revenue, a 31.3% year-over-year increase. However, it reported a $32.8 million net loss compared to a $26.3 million net loss for the year-ago quarter.

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About the Author(s)

Edward Gately

Senior News Editor, Channel Futures

As news editor, Edward Gately covers cybersecurity, new channel programs and program changes, M&A and other IT channel trends. Prior to Informa, he spent 26 years as a newspaper journalist in Texas, Louisiana and Arizona.

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