Like in every other industry, the tech industry is also always experiencing changes and revolutions. In such an industry, it is not uncommon to see companies face tough decisions to stay competitive and relevant.

Recently, in this dynamic environment, the buzzword ‘Teradata Layoffs’ has been floating around, causing a stir among employees and industry observers alike. But what’s the truth behind these rumors? Are layoffs imminent at Teradata, or is it just industry chatter?

In this article, we will take a closer look into this Teradata layoffs speculation to uncover the truth behind the concerns.

A Close Look at Teradata

Before we dive in to uncover the truth behind the recent Teradata layoffs speculations, let’s take a moment to see what the company really stands for.

Teradata Corporation is an American software provider that has been a significant player in the tech industry since its inception in 1979. Originating from a collaboration between Caltech researchers and Citibank’s advanced technology division, the company has grown to offer cloud database and analytics-related software, products, and services globally.

The company distinguishes itself through its focus on consultancy, cloud products, and business analytics. And it presently caters to diverse markets in Asia, Europe, the Middle East, and the Americas.

Headquartered in San Diego, California, with major presences in Atlanta and San Francisco, Teradata has been publicly traded on the New York Stock Exchange under the ticker code TDC since it became a standalone public company in 2008.

Under the leadership of President and CEO Steve McMillan since 2020, Teradata has pursued acquisitions to enhance its offerings. However, the company has not been immune to the challenges of the tech industry, including past layoffs and rumors of more in 2023.

Teradata Layoffs – Is the Company Laying Off in 2023?

Now, let’s get to the crux of the matter – Teradata Layoffs. Many have been wondering if there are presently any layoffs going on in the company or perhaps there are some in the pipeline for the year.

Well, the truth is that there is presently no clear indication that Teradata is laying off employees. However, there have been some rumors about this, and it has created a lot of uncertainties among Teradata employees regarding potential layoffs.

Historically, the company has experienced layoffs in 2019 and 2020, affecting both white-collar and factory workers. Currently, Teradata employs approximately 8,535 people, but there are no recent data confirming layoffs this year.

Let’s quickly take a look at the company’s past layoffs to better understand why many Teradata employees are presently concerned about this rumor.

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Teradata Laid Off Up to 100 San Diego Workers in 2019

Teradata Layoffs

The year 2019 was tumultuous for Teradata. Amidst relocating its headquarters from Dayton, Ohio, to San Diego and undergoing significant leadership changes, the company also faced a downturn in its stock prices.

The company laid off about 80 employees at its San Diego headquarters, part of a broader restructuring effort. This move was in line with the transition of its business model to a cloud-based subscription format.

Although this transition was challenging and impacted revenue, Teradata remained committed to the San Diego community, adding around 300 employees in the same year. Yes, the Teradata layoffs were seen as a significant move. Yet, it was a necessary step to align the company’s resources with its evolving business strategy.

Why Is Teradata Laying Off Employees?

The primary reason for Teradata’s layoffs has been its shift towards a cloud-based subscription model for its data analytics software, moving away from traditional licensing arrangements.

This change, while necessary for long-term growth, has had its challenges, particularly in terms of revenue generation and maintaining a stable workforce. Their revenue dropped significantly due to fewer significant licensing deals.

Consequently, Teradata had to realign its workforce to adapt to this new business strategy. This was what caused the Teradata layoffs that happened in both 2019 and 2020. They were a part of a larger restructuring plan.

Teradata’s Stock Presently Falling

Teradata’s stock has recently been on a decline, particularly after its second-quarter results in 2023 fell short of analyst expectations. The company’s performance, including lower billings, operating income, and disappointing free cash flow, has impacted its stock value.

Despite some positive indicators like exceeding revenue and annual recurring revenue forecasts, the overall picture has been challenging, with the stock price significantly below its 52-week high. This has raised concerns among investors and stakeholders alike.

If you are presently considering investing in Teradata stocks, you might need to get your strategies well sorted out before taking the shot.

How Are Workers Feeling After the Rumors About Teradata Layoffs?

The rumors of potential layoffs at Teradata in 2023 have understandably caused anxiety and uncertainty among its employees. This unease is not only due to the possibility of job loss but also reflects a broader trend of instability in the tech industry.

Employees across various sectors are grappling with similar fears as companies face tough choices in balancing growth, shareholder value, and employee welfare. For Teradata employees, the lack of clear communication regarding the future of their jobs and the history of past Teradata layoffs add to the anxiety.

Final Note

While there is no concrete evidence of layoffs at Teradata in 2023, the rumors and past history of workforce reductions have cast a shadow of uncertainty over its employees.

The company’s transition to a new business model and the fluctuating stock market have been pivotal factors in this situation. However, there has yet to be any official statement to confirm that Teradata is laying off employees in 2023.

If you have been concerned about the rumor, like many people do, then you should just rest your mind. Teradata is not downsizing this year.

FAQs

How Many Employees Does Teradata Have?

As of December 31, 2022, Teradata Corporation reported having 7,000 employees. This marked a decrease of 200 employees or about 2.78% compared to the previous year. This number reflects the company’s global workforce across its various operations in different regions.

Is Teradata a Good Company to Work for?

Teradata generally receives positive reviews as an employer. It has a rating of 4.1 out of 5 based on 306 employee reviews on AmbitionBox. One of the most praised aspects of working at Teradata is its work-life balance, which scores a high rating of 4.3.

However, the aspect of career growth is seen as an area needing improvement, with a lower rating of 3.5. These ratings suggest that while there are areas of strength, like work-life balance, there are also opportunities for the company to enhance employee experiences, particularly in career development.

Who is Teradata Owned By?

Teradata was originally a division of NCR Corporation. NCR, founded in 1884 as the National Cash Register Company, was acquired by AT&T in 1991. Later that year, the NCR division acquired Teradata Corporation, an established database machine vendor at the time.

Since then, Teradata has operated as an independent entity, especially after becoming a standalone public company in 2008.

Where is Teradata Headquarters Located?

Teradata’s headquarters are located in San Diego, California. In addition to its San Diego base, Teradata has other significant U.S. locations, including offices in Atlanta and San Francisco. These locations are particularly important for the company’s data center research and development activities.

Is Teradata Better than Oracle?

Comparing Teradata to Oracle depends largely on the specific needs and contexts of their use. While both companies offer robust database and analytics solutions, they have different strengths.

Teradata is often lauded for its superior performance in big data analytics. In contrast, Oracle provides comprehensive solutions that include both hardware and software, optimized for on-premise installation. However, in the realm of big data performance, Teradata is generally regarded as having an edge over Oracle.

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