Culture Amp cuts 70 jobs, second round in 7 months

Culture Amp is cutting 70 roles, about 9% of its workforce. This is the second major headcount reduction in seven months for the Melbourne employee engagement platform.

The company cut 60 jobs in November 2024. Now it is cutting 70 more, focused on middle management according to sources. That is 130 roles gone in less than a year.

The numbers tell the story

Revenue growth slowed hard: 32% in FY23, 19% in FY24, 10.8% in FY25. The company posted losses of $91.5 million across FY24 and FY25, including $37m in FY25 alone.

Blackbird, a key investor, cut Culture Amp's valuation by 23.5%. The company peaked at $2 billion in 2021 after a $135m Series F. Now it sits at $1.5 billion, down from that high.

Leadership churn

Founder Didier Elzinger stepped down as CEO in January after 16 years. Caroline Rawlinson took over. The Chief Revenue Officer left in May after 18 months in the role.

Rawlinson called the cuts "difficult but necessary decisions to deliver on our long term ambitions." The changes aim to "align investment with our refreshed strategic priorities."

What this means for sales teams

Two rounds of cuts in seven months signal serious pressure. When middle management goes, territory structures usually change. When the CRO leaves and headcount drops, quota distribution and comp plans often follow.

If you are selling into HR tech in ANZ, Culture Amp's struggles create opportunity. When a market leader stumbles, competitors move in. If you are at Culture Amp, the territory probably just got bigger without more resources.

The company launched AI Coach in November, the same time as the first cuts. Product innovation during contraction is standard playbook: automate to reduce headcount needs, sell efficiency to justify the spend.

Culture Amp's 70 cuts join a broader trend of ANZ tech companies recalibrating after 2021's funding highs. SafetyCulture, another Melbourne unicorn, faces similar pressure. The ANZ enterprise software market is tightening.