Kissflow Restructures Workforce, Lays Off 11% of Employees Amid Global SaaS Slowdown

Chennai-based workflow automation software provider Kissflow has announced a significant organizational restructuring, resulting in the layoff of approximately 45 employees, representing 11% of its workforce. This move comes amid broader challenges in the global software-as-a-service (SaaS) industry, which has been grappling with slower growth and increased market pressures.

Founded in 2012, Kissflow is a bootstrapped startup known for its cloud-based no-code and low-code work management products. Prior to the layoffs, the company employed around 400 people. The job cuts, which occurred across India, the US, and the UAE during April and May, were driven by a strategic shift in the company's operational focus and an annual performance review process.

"We moved away from land-motion procurement to expand motion to increase customer acquisition across our products," explained Suresh Sambandam, Founder and CEO of Kissflow. "Additionally, our annual performance reviews led to the layoff of around 20 employees. All affected employees received severance packages, and 90% have already been placed in new roles, with the remaining 10% expected to be placed soon."

This development follows Kissflow's headline-making employee appreciation drive in 2022, where the company gifted 5 Series BMWs worth Rs 1 crore each to key staffers.

The layoffs at Kissflow are part of a broader trend in the SaaS industry, which has been struggling to replicate the growth highs experienced in 2021 and 2022 during the post-Covid digitization boom. The sector has faced extended sales cycles, multiple rounds of layoffs, and increased pressure to attract new clients.

SaaSBoomi, a collective of SaaS and product company founders, recently revised the 2030 enterprise value projections of Indian SaaS startups from $1 trillion to $500 billion, citing the challenging market conditions. Similarly, a 2023 report by Zinnov and Chiratae Ventures marked down the 2026 revenue projections of Indian SaaS startups from $100 billion to $26 billion.

As the SaaS industry continues to navigate these headwinds, Kissflow's restructuring reflects the need for companies to adapt their strategies and optimize their operations to sustain growth and remain competitive.