Pipedrive cuts 70% of its Estonian workforce in global restructuring

Pipedrive will cut 267 jobs in Estonia, 70 percent of its workforce in the country, as part of a global restructuring announced on 29 October, reports ERR. The cuts cover 219 positions in Tallinn and 48 in Tartu, out of 380 employees in Estonia, and reach analysts, designers and marketing specialists.

The customer relationship management software company employs nearly 800 people. In a letter to employees obtained by ERR, CEO Paulo Cunha wrote that Pipedrive is significantly reducing its size in all locations, with fewer teams, management layers and locations.

Cunha linked the move to changes in how small businesses buy software. He said more of them ask AI for software recommendations, that the free web traffic behind the company's growth has fallen sharply, and that paid traffic to replace it costs more. He added that the layoffs do not mean AI is being used to cut costs or replace people.

Pipedrive says it will keep investing in its core CRM product while building an AI sales system that records sales conversations, keeps data current, recommends next steps and handles routine tasks. It also plans to rely less on paid search advertising and to put most core teams in the same office. According to Äripäev, the company is closing its Portuguese office.

Pipedrive has been majority owned by Vista Equity Partners since 2020 and generated €237 million in revenue last year with an operating profit of €32.7 million, Estonian World reports.