Envestnet layoffs, on the record
Every job cut, severance charge and restructuring Envestnet reported in its annual reports, 2021 to 2023, quoted from the filings.
Headcount, as reported
| Annual report | Employees | As of |
|---|---|---|
| 10-K for 2021 | approximately 4,375 | 2021 |
| 10-K for 2022 | 3,429 full-time employees | 2022 |
| 10-K for 2023 | approximately 3,100 employees | As of December 31, 2023 |
Job cuts, severance and restructuring
Our summaryEntered into separation agreements with several employees as part of an organizational realignment, with severance expense recognized in both years.
Word for word“In the fourth quarter of 2020, as part of an organizational realignment, the Company entered into separation agreements with several employees.” 10-K for 2021
Our summaryOffered a voluntary early retirement program to eligible employees, with the related 2020 severance charges causing a decrease in severance expense in 2021.
Word for word“The decrease in severance expense is primarily related to charges incurred during 2020 in connection with a voluntary early retirement program offered to eligible employees.” 10-K for 2021
Our summaryRecorded total severance expense in the adjusted EBITDA reconciliation, including amounts from the 2020 and 2021 programs.
Word for word“Severance 11,347 25,110 15,367 Fair market value adjustment on contingent consideration liability (1,067) (3,105) (8,126) Fair market value adjustment on investment in private company (758) — — Litigation and regulatory related expenses 7,591 7,825 2,879 Foreign currency (7) 116 (72) Gain on settlement of liability (1,206) — — Gain on insurance reimbursement (968) — — Non-income tax expense adjustment (1,347) 421 374 Gain on acquisition of equity method investment — (4,230) — Gain on sale of interest in private company — (1,647) — Loss allocations from equity method investments 7,093 5,399 2,361 (Income) loss attributable to non-controlling interest (704) (1,830) 110 Adjusted EBITDA $ 261,730 $ 242,943 $ 193,287 52 Table of Contents” 10-K for 2021
Our summaryEntered into an outsourcing partnership with Tata Consultancy Services that outsourced most of the Yodlee Bangalore workforce, reducing the India population by 35%.
Word for word“During the fourth quarter of this year, Envestnet entered into a partnership with Tata Consultancy Services, outsourcing 94% of our Yodlee Bangalore workforce, reducing our overall India population by 35%.” 10-K for 2022
Our summaryIncurred severance, lease-related restructuring write-off and other expenses in connection with the TCS outsourcing arrangement.
Word for word“In connection with the outsourcing arrangement with TCS, we incurred severance expenses, write-off of lease related restructuring costs, and other related expenses of approximately $9.1 million.” 10-K for 2022
Our summaryEntered into separation agreements with a number of employees as part of an organizational realignment.
Word for word“In connection with the organizational realignment, we incurred approximately $10.1 million of total severance expense during 2022.” 10-K for 2022
Our summaryThe company ran a reduction in force in 2023, along with a fourth quarter 2022 realignment, and recorded about $35.4 million of severance expense for 2023.
Word for word“In connection with the reduction in force initiative that began in the first quarter of 2023, as well as the fourth quarter 2022 organizational realignment, we incurred $35.4 million in total severance expense for the year ended December 31, 2023.” 10-K for 2023
Our summaryThe company closed four offices in 2022, which raised lease restructuring and transaction costs.
Word for word“General and administrative expenses increased $47.2 million, or 27%, for the year ended December 31, 2022 compared to the year ended December 31, 2021 primarily due to increases in lease restructuring and transaction costs of $16.6 million driven by the closure of four offices, software and maintenance charges of $16.6 million, travel and entertainment expenses of $5.6 million, communications, research and data services of $3.5 million, insurance, bank and payroll expenses of $2.0 million and other miscellaneous increases within general and administrative expense of $2.5 million.” 10-K for 2023
Our summaryThe company had a remaining severance liability from these efforts at year end, most of it due in 2024 and the rest through 2030.
Word for word“As of December 31, 2023 we had an ending liability balance of $10.3 million related to these efforts, of which we anticipate approximately $9.2 million to be paid throughout 2024, with the remaining balance paid through 2030.” 10-K for 2023
| Fiscal year ended | Severance costs | Cash paid for restructuring |
|---|---|---|
| 2022-12-31 | $30.1 million | $20.2 million |
| 2023-12-31 | $35.4 million | $40.5 million |
Envestnet has filed no restructuring notice (Form 8-K, Item 2.05) since 2016. Companies file one only for a cut they judge material, so many announced layoffs never appear as one. This page shows what the company reported to the SEC, not news reports or state layoff notices.
Read from Envestnet’s annual reports (10-K for 2023, 10-K for 2022, 10-K for 2021) and the financial data it files with the SEC, as of 2024-02-28. Every quotation is word for word from the filing linked beside it; how these pages are built and checked. The full record is in its company data sheet.