Culture Amp Cuts 60 Jobs as Company Pivots to AI-Powered Solutions

Culture Amp laid off 60 employees on November 18, 2025, reducing its global workforce by 6%. The Melbourne-based employee engagement software company announced the workforce reduction as part of a strategic shift toward developing new artificial intelligence products. The layoffs affect staff across multiple offices as Culture Amp restructures operations to focus resources on AI-driven workplace analytics and engagement tools.

Context of the Decision

The layoffs reflect Culture Amp's strategic pivot toward artificial intelligence capabilities in the competitive HR technology market. The company is reallocating resources to develop AI-powered features that can provide deeper insights into employee sentiment and organizational culture. This workforce reduction follows a broader trend among SaaS companies that expanded rapidly during the pandemic and are now optimizing operations amid changing market conditions.

Culture Amp's decision aligns with increasing customer demand for automated analytics and predictive insights in employee engagement platforms. The company aims to integrate machine learning algorithms that can identify patterns in employee feedback and recommend targeted interventions for improving workplace culture. This technological shift requires specialized AI talent while reducing needs in traditional software development and support roles.

Impact on Operations

The 60-person reduction primarily affects engineering, customer success, and administrative functions across Culture Amp's global offices in Melbourne, San Francisco, and London. Engineering teams focused on legacy platform maintenance face the largest cuts as the company consolidates development efforts around AI initiatives. Customer success roles are being streamlined through automation and self-service tools that reduce manual intervention requirements.

Sales and marketing departments remain largely intact as Culture Amp maintains its growth trajectory in the competitive employee engagement market. The company's people science team, which conducts workplace research and develops engagement methodologies, continues operating at full capacity to support AI model development. Remote workers across various time zones are included in the layoffs as Culture Amp consolidates operations in key geographic hubs.

Company Financial Background

Culture Amp raised $135 million in Series F funding in 2021, achieving a valuation of $2 billion during the height of pandemic-driven HR technology investment. The company serves over 6,000 organizations globally, including major enterprises like Airbnb, McDonald's, and Oracle. Revenue growth has moderated from pandemic highs as companies reduce HR technology spending amid economic uncertainty.

The employee engagement software market faces increasing pressure from established players like Microsoft Viva and emerging AI-native competitors. Culture Amp's platform, which helps organizations measure and improve employee experience through surveys and analytics, competes in a crowded field where differentiation increasingly depends on advanced data science capabilities. The company's decision to invest heavily in AI reflects recognition that traditional survey-based approaches need technological enhancement to maintain competitive advantage.

Industry Outlook

The employee engagement software sector is experiencing consolidation as companies struggle to justify premium pricing for basic survey tools. Competitors like Glint (acquired by Microsoft) and 15Five have similarly invested in AI-powered insights to differentiate their offerings. The shift toward predictive analytics and automated recommendations represents the industry's response to customer demands for actionable intelligence rather than raw data.

Recent workforce reductions at HR technology companies including BambooHR, Lattice, and Workday signal broader market maturation. Organizations are demanding integrated platforms that combine engagement measurement with performance management and learning systems. Culture Amp's AI focus positions the company to compete with comprehensive HR suites while maintaining its specialized expertise in organizational culture.

Conclusion

Culture Amp's workforce reduction reflects a calculated bet on artificial intelligence as the future of employee engagement technology. While the layoffs create short-term disruption, the company's focus on AI-powered insights aligns with market trends toward automated people analytics. Success will depend on Culture Amp's ability to deliver differentiated AI capabilities that justify premium pricing in an increasingly competitive market. The restructuring positions the company for potential growth as organizations seek sophisticated tools for understanding and improving workplace culture in hybrid work environments.