dbt Labs, a data transformation software company, laid off 15% of its global workforce in May 2023. This decision came after a review of Q1 2023 financials, where growth, while continuing, fell short of the company's ambitious plans. CEO Tristan Handy cited the need to reset expectations in a challenging economic environment for the software sector. The layoffs impacted every business function. Prior to this, dbt Labs had grown rapidly from about 50 employees in early 2021 to over 440, driven by strong demand for its dbt Cloud product. The company, which serves over 20,000 businesses, offered a 12-week severance package and other support to affected employees.
