PTC to lay off an undisclosed number of workers, as the industrial software developer seeks to consolidate its customer support staff.
The Boston-based company said it would cut a number of jobs as part of an effort to save $ 60 million a year. The goal of the restructuring is to simplify customer support, chief executive James Heppelmann said on a call with analysts on Nov. 3.
Calling the current system “inefficient,” Heppelmann ticked off at least seven separate groups within the company that deal with customers, including after-sales consulting, customer success management and technical support. All of the groups will now be combined into one called “customer success”.
Customers will have “one customer contact rather than several,” he said. “There is only kindness here for everyone. Customers prefer this model, and it will save PTC a lot of money because it is much more scalable.
The cuts follow advice PTC received from consulting firm McKinsey on future strategy, Heppelmann said.
PTC, which has around 6,500 workers worldwide, declined to disclose how many jobs were cut or where they were.
“While we regret the impact this realignment has had on some of our employees, around the same time next year we expect to have a larger workforce than today,” PTC said in a statement. at the Globe. “As part of these changes to becoming a fully cloud-based software company, we will be adding new jobs in Massachusetts and around the world. “
The cuts come even as PTC continues to grow, with revenue increasing 23% to $ 481 million in its most recent quarter ended September 30. The company’s net profit of $ 293 million more than quintupled from the previous year. Most of the increase came from PTC’s investment in Matterport, a 3D imaging software company that went public in July, and a change in tax accounting.
PTC, known for its industrial design software, was founded in 1985. The company makes software to design everything from large machines to factory parts. It also extended to the activity of collecting and analyzing data from machines in use.
Once a high-flying business, the business collapsed during the dot-com collapse.
In 2010, Heppelmann took over as Managing Director, pushing the company into different lines of business. During his tenure, the company embarked on connected devices, acquiring a platform for the Internet of Things, called ThingWorx. It also entered the augmented reality market by acquiring a platform called Vuforia. In recent years, its industrial design software has moved to a subscription-as-a-service model.
In 2019, the company moved from Needham to a new headquarters in the Seaport district of Boston. The move to the city was part of Heppelmann’s drive to transform the corporate culture and make it more attractive to young workers.
Aaron Pressman can be contacted at aaron.pressman@globe.com. Follow him on twitter @ampressman. You can reach Pranshu Verma at pranshu.verma@globe.com. Follow him on twitter @pranshuverma_.
Comments are closed.