3y
Thank you for the feedback. Reducing headcount is certainly not an easy decision for anyone involved. You’ve seen the transparent financials and KPIs we’ve presented to the organization, which we will continue to do. We all hoped it wouldn’t be necessary to make this change, but as our 2023 planning process progressed, the need to act became clear and we acted quickly. The impact was 8% of our total headcount.
It’s important to note that 2021 and early 2022 were a growth phase for Help Scout. We raised capital to invest in the functions you mentioned and increased R&D investment by more than 60%. Our Sales & Marketing investment increased by more than 150%. Unfortunately, when some of those investments aren’t generating a clear return for the business, we have to analyze the data and course correct, especially amid increased market uncertainty.
Ultimately, I’m accountable for any underperformance in the business and I’m genuinely sorry for how this impacted our teammates. It’s my responsibility to balance risk and good financial stewardship so we can reach our long-term goals. I remain open to additional feedback from the team and will continue to share the performance of the business.
- Nick Francis, Co-founder & CEO