Culture Amp, the Australian employee experience startup, has announced another round of job cuts, shedding around 70 roles or approximately 9% of its workforce. This move follows persistent financial challenges and a strategic overhaul initiated by the new CEO, Rawlinson, replacing founder Didier Elzinger earlier this year.
- 70 roles cut, focused on middle management
- Valuation dropped 23.5% since last investment round
- Revenue growth slowed annually from 32% to 10.8%
What happened
Culture Amp, a leading Australian startup specializing in employee feedback software, has cut approximately 70 jobs, representing about 9% of its workforce. This reduction is the second recent round of layoffs, coming just seven months after a previous cut of 60 jobs that coincided with the launch of its AI-powered coaching product. The restructuring is part of broader organizational changes announced by the company’s CEO Rawlinson, who took over from founder Didier Elzinger in January 2026.
The layoffs have targeted middle management roles across several teams, reflecting a strategic decision to accelerate execution and better align investments with the company’s updated priorities. Culture Amp reported cumulative losses of A$91.5 million over the 2024 and 2025 fiscal years, including a $37 million loss in the most recent fiscal year, underscoring the financial pressure behind these cuts.
Why it matters
Culture Amp’s financial performance and workforce reductions highlight the challenges facing Australian tech scaleups navigating slowing revenue growth and investor skepticism. The company’s revenue growth rate has declined sharply from 32% in FY23 to just 10.8% in FY25, while its market valuation has been cut by 23.5% by key investor Blackbird since its peak. These developments indicate tightening budgets and increased scrutiny over achieving sustainable profitability.
The transition in leadership also signals a shift in company strategy and priorities. Founder Didier Elzinger stepping aside, with the incoming CEO focusing on operational efficiency and streamlining the organization, demonstrates an effort to mature the business amid a more competitive global market. The job cuts illustrate the difficult trade-offs involved as Culture Amp seeks to maintain long-term viability.
What to watch next
Stakeholders will be monitoring how Culture Amp’s new leadership team executes its strategic plan post-restructuring, particularly its ability to regain revenue momentum and stabilize losses. Performance of the recently launched AI coaching product could be a key factor in driving growth and differentiation in the employee experience software market.
Additionally, follow-up changes to company culture, talent retention, and investor confidence will play crucial roles. The departure of the chief revenue officer just months into the new CEO’s tenure raises questions about sales leadership continuity. Observers will also watch for any further funding moves or valuation adjustments as the company navigates these transformative challenges.