A Burlington, Massachusetts-based software company that recently completed the $875 million purchase of Raleigh-based ShareFile announced a mass termination.
Progress Software will lay off 199 workers at ShareFile’s former Hillsborough Street office, starting on Jan. 6 and continuing through June. Most of the layoffs will occur in January and February. Affected employees are being provided at least 60 days notice of their termination
“Progress acquired the ShareFile business from Cloud Software Group because we value the business and culture that they have created. To continue this success and integrate the business into Progress, we had to make some difficult decisions about the go-forward organization, which means not everyone will be able to stay with Progress long-term. We deeply appreciate everything that the ShareFile employees have done to build the business ShareFile is today and their ongoing work to make the transition as seamless as possible,” according to a statement released by the company Thursday.
A November 2023 report by WRAL stated ShareFile had about 300 employees in Raleigh. Progress did not answer a question about the total number of employees in Raleigh. Progress also has operations in Morrisville.
On Oct. 31, Progress filed a SEC notice announcing it had completed the acquisition of ShareFile, the company founded in 2005 by Jesse Lipson that allows customers to share files and collaborate on documents. Lipson sold to Citrix in 2011. ShareFile is expected to add more than $240 million in annual revenue and more than 86,000 customers to Progress.
Progress reported $694 million in revenue and almost 2,300 employees in the fiscal year ending Nov. 30, 2023. About 41% of its revenue is generated outside North America. Progress shares were trading around $67.22 early Thursday. Shares have traded between $48 and $68.06 in the past year. It has a market cap of $2.8 billion.