Smartsheet, the Bellevue-based enterprise software company recently taken private in an $8.4 billion acquisition, has confirmed a round of layoffs as it undergoes a major leadership transition.
The company declined to specify the number of affected employees, but a source familiar with the matter stated that the cuts impacted more than 120 workers.
The reductions come on the heels of the departure of longtime CEO Mark Mader, who announced in August that he would retire at the end of September. In his place, Sunny Gupta, co-founder of Apptio and a prominent figure in Seattle’s tech scene, stepped in as acting CEO and executive chair.
Smartsheet had experienced rapid growth in recent years, expanding to more than 3,300 employees by 2023, nearly triple its headcount from five years prior, according to its final quarterly filing before going private.
The acquisition, led by Blackstone and Vista Equity Partners, closed in January and officially removed Smartsheet from the New York Stock Exchange. The deal carried a 41% premium over the company’s average stock price in the months leading up to reports of the transaction.
Both private equity firms have been active in the Pacific Northwest tech sector. Vista previously acquired Apptio and Avalara, while Blackstone purchased pet-sitting marketplace Rover.
Since the acquisition, Smartsheet has placed a strong emphasis on artificial intelligence integration, both internally to streamline operations and within its platform to expand AI-driven features for customers.
The company did not disclose whether Thursday’s layoffs were tied directly to restructuring under its new ownership or broader market challenges facing the enterprise software industry.
