Layoffs Hit the Channel as SADA Cuts 11% of Jobs

SADA, the Google Cloud-only managed service provider, laid off 11% of its 1,000-member workforce on Tuesday.

SADA’s Tony Safoian

“This is something we’ve never done, and it is the most difficult decision we have made as a company,” SADA President and CEO Tony Safoian wrote on LinkedIn.

The job cuts come amid wider losses and pullbacks in the tech sector. Facebook parent Meta just announced more than 11,000 layoffs. Earlier this week, Salesforce laid off hundreds of employees. Oracle Cloud and Microsoft are shedding staff, and Intel looks to be on the verge of axing workers, too. There are a number of others as well.

The overriding reason pertains — no surprise — to the tumultuous and uncertain global economy. While Safoian did not specify why SADA is laying off employees, the MSP no doubt suffered some trickle-down effects as Alphabet, which owns Google Cloud, reported weaker-than-expected earnings. SADA’s customers also are combating the same macroeconomic pressures as everyone else.

Here’s what Safoian wrote in response to a commenter on LinkedIn about the job cuts: “SADA is privately held, and self-funded, so no external pressure. We were simply overly optimistic relative to what the reality of [2022’s second half] brought forth. Even after this reduction, our headcount has grown 150% in the last 12 months.”

Indeed, from paying higher costs for manufacturing and labor to waiting out the ongoing war in Ukraine and stilted supply chain flows, businesses worldwide are struggling to profit. And when it comes to bellwethers, the tech sector stands out. When these companies, typically hot and able to withstand some headwinds, flail, that tends to indicate weakness throughout the whole economy.

For SADA, dropping 11% of its staff represents a significant reduction. The Los Angeles-based MSP hit the 500 mark in October 2021, with people in the United States, Canada and Armenia. The losses extended throughout North America, Safoian wrote. That geography arguably ranks among the most expensive in which to operate right now.

‘My Heart Is Heavy’

“My heart is heavy knowing this decision’s immense impact on each departing team member and their families,” Safoian wrote. “As the CEO, I’m fully responsible for this day.”

Safoian said SADA will provide “support and resources” to its laid-off workers.

The cuts came in various roles, including customer success and technical account managers; data, security, software, cloud infrastructure and sales engineers; marketing and inside sales; program managers; and more.

A former technical recruiter for SADA commented on Safoian’s post that the job loss “was truly devastating for me and so many incredibly talented people. SADA was my second family, a culture second to none. … I’m so heartbroken and saddened for everyone impacted and will forever be grateful for the relationships I built and the opportunity to grow this company.”

The Nov. 8 layoffs at SADA mark the first time in the company’s 22-year history that it has cut jobs. It’s not clear whether the action will affect SADA’s ability to reach its $2.5 billion, three-year sales goal for Google Cloud.