F5 Layoffs Hit More than 600 Workers Despite Strong Q2 Earnings

F5 layoffs have impacted 9% of the multicloud application services and security company’s workforce, or about 620 workers.

“It was a joke they did this on my day off and I had no clue until I got a email to my personal email saying I was canned and had until 6 p.m. to claim my stuff followed by 30 minutes later cutting me off from the network after the meeting seven hours before what’s stated in the email,” one worker posted on TheLayoff.com on Thursday. “Put almost 10 years into this job to not even have the respect to let me know I was let go.”

The F5 layoffs were announced with the company’s earnings for the second quarter of fiscal 2023. F5 expected to complete the layoffs by Friday, with the exception of the EMEA and parts of APAC. Those employees will continue the consultation process over the coming weeks, as required by local laws.

F5 Layoffs Will Save $130 Million Annually

F5 estimates these layoffs will result in annualized savings of about $130 million. The company expects it will incur approximately $45 million in severance benefits costs and other charges.

Additionally, F5 will reduce and in some cases eliminate portions of its facilities footprint, as well as reduce costs by applying additional scrutiny on discretionary projects, further reducing travel, and substantially reducing the size of its corporate bonus pool in 2023.

“I still think this is the beginning,” another worker said on TheLayoff.com. “Keep the resume updated! They’ve had three layoffs in three years! Expect to see more if the demands keep shrinking.”

In the meantime, F5’s revenue was $703 million in the second quarter, up from $634 million from the year-ago quarter. Profit was $154 million, compared to $131 million for the year-ago quarter.

F5 Networks’ Francois Locoh-Donou

“We delivered 11% revenue growth in our second quarter as a result of stronger-than-expected systems shipments and strong global services performance,” said François Locoh-Donou, F5’s president and CEO. “While customer spending remains pressured by macro-economic uncertainty near term, we are differentiated in our ability to help customers tackle the significant challenges ahead, including simplifying their hybrid and multi cloud application environments.”

F5 downgraded its earnings expectations for the third quarter. It now expects revenue ranging from $690 million-$710 million.

“Given the persistent macro uncertainty and its impact on customer spending, we now expect low-to-mid single-digit revenue growth in fiscal year 2023 with non-GAAP operating margins of approximately 30% and non-GAAP earnings growth of 7% to 11%,” Locoh-Donou said.