GEP Implements Workforce Reduction in Strategic Restructuring Move

Global procurement and supply chain technology leader GEP conducted layoffs on December 2, 2025, as part of a broader organizational restructuring initiative. While the company has not disclosed exact numbers of affected employees, the workforce reduction reflects ongoing adjustments in the enterprise software sector amid evolving market conditions and increased focus on artificial intelligence integration. The New Jersey-based company, known for its procurement software solutions and consulting services, joins a growing list of technology firms implementing strategic workforce adjustments in late 2025.

Context of the Decision

The GEP layoffs stem from the company's strategic pivot toward AI-powered procurement solutions and the need to optimize operational efficiency in a competitive market. Like many enterprise software companies, GEP experienced rapid expansion during the pandemic as businesses accelerated digital transformation initiatives. However, the current economic climate has prompted technology firms to reassess their workforce structures and focus resources on core growth areas.

The procurement technology sector has faced particular pressure as companies scrutinize software spending and demand more integrated, AI-driven solutions. GEP's decision to restructure reflects broader industry trends where traditional procurement software providers must evolve or risk losing market share to more innovative competitors offering machine learning and automation capabilities.

Impact on Operations

The workforce reduction primarily affected support functions and legacy product development teams, according to industry sources familiar with the situation. GEP's consulting division, which provides procurement advisory services, also experienced staffing adjustments as the company shifts focus toward its software-as-a-service offerings.

The layoffs impacted multiple locations across GEP's global operations, including positions at the company's headquarters in Clark, New Jersey, and international offices in Europe and Asia. Engineering teams working on next-generation AI procurement tools remained largely intact, signaling the company's commitment to innovation in automated sourcing and spend analytics.

Customer-facing roles, including account management and technical support positions, saw selective reductions as GEP implements more efficient service delivery models powered by automation and self-service capabilities.

Company Financial Background

GEP, founded in 1999, has established itself as a significant player in the procurement technology space, serving Fortune 500 companies and large enterprises globally. The privately-held company has maintained steady growth over two decades, building a comprehensive suite of procurement software tools and consulting services.

The company's SMART by GEP platform has gained traction in recent years, offering end-to-end procurement solutions that combine sourcing, contract management, and supplier relationship tools. However, increased competition from both established enterprise software giants and emerging AI-focused startups has intensified pressure on mid-tier procurement technology providers.

Recent market conditions have challenged growth projections across the enterprise software sector, with many companies experiencing longer sales cycles and more cautious customer spending on new technology implementations.

Industry Outlook

The procurement technology sector continues consolidating as organizations seek comprehensive platforms rather than point solutions. Major enterprise software companies like SAP, Oracle, and newer entrants focusing on AI-driven procurement are capturing increasing market share, pressuring specialized providers like GEP to differentiate their offerings.

Industry analysts note that procurement software companies must demonstrate clear return on investment through automation and cost savings to justify their platforms. This environment has led to workforce reductions across multiple procurement technology firms as they streamline operations and invest heavily in AI capabilities.

The shift toward intelligent procurement solutions requires different skill sets, prompting many companies to restructure their workforce to align with evolving technology demands and customer expectations.

Conclusion

GEP's December 2025 layoffs represent a strategic realignment rather than financial distress, positioning the company for future growth in AI-powered procurement solutions. The workforce reduction allows GEP to redirect resources toward innovation and competitive differentiation in an increasingly crowded market.

The company's focus on automation and artificial intelligence suggests confidence in the long-term procurement technology market, despite near-term challenges. Success will depend on GEP's ability to deliver compelling AI-driven solutions that demonstrate measurable value to enterprise customers while maintaining service quality during the transition period.