It’s learned that Leadpages laid off a sizeable chunk of their employee base last month. As further proof that one company buying another doesn’t inherently result in a bigger crew, sometimes the ship simply needs more refined skill sets than sheer hands on deck.
John Tedesco took over as Leadpages/Drip CEO on August 1, 2017 replacing cofounder Clay Collins and had this to say about the development:
“When I became CEO in August, we evaluated every aspect of the business. We concluded that some areas were over-invested in and some were under-invested in, relative to their market opportunities. As such, we reassigned a number of people internally but, unfortunately, had to let go of about 15% of our team (24 individuals) at the end of September across all functions. With 130 people on rightsized and focused teams, we are now profitable and well positioned for healthy growth.”
Cost cutting overhead is one method of increasing margins and profits; in the summer of 2016, Leadpages peaked headcount with approximately 175 employees before letting go of 22 at the time.