Blackbaud follows hiring freeze with layoffs
Daniel Island-based Blackbaud has made cuts in its staff, confirms the company, but has not confirmed the number of employees laid off.
“We do not comment on the numbers of a workforce reduction, however, it was a small percentage of our overall workforce,” stated Blackbaud media relations.
The layoffs are a result of the COVID-19 pandemic impact on the software company.
“The COVID-19 pandemic is impacting nearly every industry globally. At the onset of the pandemic, we acted quickly, implementing important measures to support our people, serve our customers and preserve the powerful foundation of our company,” the Blackbaud media relations staff said in a statement. “Despite those efforts, the impact of the pandemic on the global economy and our customers continues to evolve and remains uncertain. We have made the very difficult decision to reduce our workforce in order to preserve the long-term success of our mission to support the social good community.”
Prior to the layoffs, Blackbaud had taken other steps to adjust to the challenges it faced from COVID-19.
In its report to investors on first quarter 2020 results posted on its website, the company stated it had taken steps “to provide additional near-term liquidity and financial flexibility while implementing employee relief measures in light of the COVID-19 pandemic.”
According to the statement, these actions included:
● Blackbaud’s board of directors eliminated the payment of quarterly cash dividends on the company’s common stock.
● Blackbaud’s 401(k) match program was temporarily suspended for U.S.-based employees.
● Temporary freeze on company hiring efforts.
● Mike Gianoni, Blackbaud’s president and CEO, would forgo his paycheck for the foreseeable future.
● Restriction of non-essential employee travel and other operating cost reductions.
● Employee cash merit increases for 2020 replaced with a one-time restricted stock grant.
● Employee cash bonus programs for 2020 replaced with a one-time performance stock grant.
● All worldwide employees with a base salary equal to or less than $75,000 received additional financial support in the form of a one-time bonus of $1,000.
— Compiled by Boots Gifford, boots@thedanielislandnews.com