Weeks after their first acquisition, local marketing SaaS venture LeadPages has reduced its headcount by 22 individuals from the product and engineering departments, representing approximately 12% of total employee base.
CEO Clay Collins had this to say about the development:
“In the span of 18 months, our project management, engineering, and QA teams tripled in size to respond to our massive customer growth. To organize these larger teams, we implemented a structure that had a number of benefits, however this structure also created increased scope, interdependencies, and complexity of projects as well as decision-making silos, all of which slowed down our ability to rapidly deliver value to the market.
Rapid decision making and the ability to move quickly are not only crucial to keeping our customers happy, but they have been increasingly requested by our product and engineering teams. We will be implementing a new structure with smaller cross-functional teams in order to decentralize decision making and allow teams to take greater ownership of the product. These new, smaller teams will enable an even greater focus on customer engagement and satisfaction by each team member.
In short, these changes will allow us to reduce interdependencies and quickly & nimbly respond to the needs of the market. In addition, we intend to return to empowered, cross-functional, customer-connected teams that can take ownership of outcomes.
All employees received a generous severance package that provides adequate opportunity for them to find another role. Also, this wasn’t due to financial difficulties (we just bought Drip and are still acquisitive); if it were, all or most departments would have been affected. Instead, these changes have been implemented solely for increased innovation and velocity as a product organization. We will continue to hire and recruit folks for our product management, UI/UX and engineering teams with the skills and experience required in our new organizational structure (and to support our continued rapid growth).”