Bonterra, the fundraising firm that is the combination of four brand names in the nonprofit vendor space, is laying off 10% of its workforce. The notice was sent via email yesterday morning and was followed up with an email from human resources to the people being separated.
The layoffs come a little more than a month since CEO Erin Mulligan Nelson left the company and was replaced by Mark Layden. Mulligan Nelson had been CEO at Social Solutions and Layden at CyberGrants, two of the four firms. The other two firms are EveryAction and Network For Good.
The acquisitions were funded by several private equity firms with Apax Partners buying parts from Insight Partners and Vista Equity Partners. Layden had been Bonterra’s chief strategy officer and had been CEO at CyberGrants for nearly seven years.
In an email to employees obtained by The NonProfit Times, Layden wrote: “Since a 1,000+ person company is organized very differently from one that is made up of 200 employees, we have had the chance to identify a number of ways to strengthen our operations and reshape our business for future growth.”
The email continued: “It is in that context that today we are announcing a strategic restructure and workforce reduction that will impact 140, or 10%, of our current employees.” According to the Layden email, the reduction in force includes “all levels (including senior levels), functional areas, and legacy entities within Bonterra.”
Specific information regarding specifically from where the cuts will come. There was reaction on Twitter regarding the potential impact on NGP VAN, the political division of EveryAction.
An email that went out a few minutes later read, in part, “If you’re receiving this email directly, it means that your role within Bonterra is being affected and your employment will be ending.” Those receiving that communication were instructed to use their personal emails to access additional information.
A spokesperson for Bonterra responded via email to an NPT email to Layden writing: “Mark is heavily focused on the team and their well-being but we would love to set up some time in the coming weeks to connect the two of you.” Asked if an official would be made available for comment, the spokesperson responded “Not at this time. The primary focus is on the team.”
Jason Wright, a partner at Apax and a member of Bonterra’s board of directors was quoted in the messaging when Mulligan Nelson left the firm. “Over the past year, Bonterra has formed a strong executive team, firmly established a new brand, and driven double-digit growth … The company is well positioned for continued growth and innovation …”
Specific information regarding specifically from where the cuts will come. There was reaction on Twitter regarding the potential impact on NGP VAN, the political division of EveryAction.