I've heard that more changes are expected in Q3 or Q4 of 2025, as BB India continues training to take on additional cybersecurity tools. Cyber teams should anticipate significant shifts, with a potential reduction in staff as BB India expands its responsibilities.
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The majority of contractors are now replaced with BB India.
Offshore hiring continues, but not with the purpose of building new capabilities.
Q1 results were mid.
Got to expect more layoffs this year.
I asked AI to generate odds of either a significant layoff or private equity buyout this year. Here's what it thought:
Private Equity Buyout: Blackbaud's slow growth, declining stock price, and recent divestiture of EVERFI suggest that the company is facing challenges. Their Q3 2024 performance led to a downgrade to "Hold" by analysts, with growth projections lowered to mid-single digits for 2025. Additionally, insider sentiment has turned negative, with increased insider selling.
Despite these struggles, Blackbaud rejected Clearlake Capital's $80 per share buyout offer, signaling confidence in its valuation. However, Clearlake already owns 18.89% of Blackbaud, meaning they could continue pushing for a takeover. If Blackbaud's financial performance continues to decline, the board may reconsider a buyout at a higher price.
Given these factors, I’d estimate the odds of Blackbaud going private within the next year at 40-60%, depending on whether Clearlake or another private equity firm increases their offer. If Blackbaud’s stock continues to underperform, the likelihood could rise.
Signficant Layoff: Blackbaud's offshoring efforts and commitment to the Rule of 45—which prioritizes a balance of revenue growth and profit margins—suggest that cost-cutting measures will continue. Recent discussions indicate that BB India is expanding, particularly in cybersecurity, which could lead to further reductions in U.S.-based roles. Employees have expressed concerns about another round of layoffs in Q3 or Q4 of 2025, with some anticipating significant shifts as Blackbaud restructures.
Additionally, Blackbaud has been posting new job openings primarily in India, reinforcing the likelihood of workforce reductions elsewhere. Given these trends, I’d estimate the odds of another significant layoff this year at 60-75%, especially if financial performance remains sluggish and offshoring efforts accelerate.
Investors see right through their tactics of cost cutting, ja--ing up rates, and India, as reflected in the share price, I'd bet a decent chunk of money on this ends up being acquired by private equity or anyone with pockets and interest in buying this.
There’s a reason why all the hiring is in India. The rule of 45 will be met from significant ‘savings’ gained by displacing domestic employees.
They are offshoring.
If your team or group is hiring BB India colleagues, be afraid. If they are hiring BB India folks for your exact same position, be very very afraid.
My guess is that they are positioning to sell. Probably going to cut and slash as much as possible.
I think all departments should be worried