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ZoomInfo Technologies (ZI) plans reduction of current employee positions by approximately 3%

June 5, 2023 7:20 AM EDT

On June 2, 2023, ZoomInfo Technologies Inc. (NASDAQ: ZI) notified employees of a plan to flatten the organizational structure, speed decision making, and enable investment in key opportunities for long-term growth while driving continued profitability. The plan includes a reduction of current employee positions by approximately 3%. The Company estimates that it will incur restructuring charges of approximately $6 million in connection with this plan, which will primarily be recognized in the second quarter.

To help make this transition easier, we are providing all impacted employees with:

  • Severance pay. We are providing an average of 10 weeks of severance, with some variation based on job level and tenure.
  • Equity award vesting. We are accelerating the vesting of certain employee equity up to a maximum amount based on job level.
  • Health care and education fund. We are providing U.S.-based employees with a COBRA health insurance subsidy of at least three months, and Israel-based employees a lump sum equal to three months’ education fund deductions on average.

As the Company indicated on its most recent financial results conference call, we plan to continue to hire within sales, engineering, and customer success and make investments to further leverage the Company’s generative AI capabilities, while focusing on efficiency throughout the rest of the organization and hiring where we think the investments will make the greatest impact.

The information contained within Item 7.01 of this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.



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