Sprout Social Lays Off 260 Workers in AI-Driven Restructuring

The Chicago-based software company said the layoffs are part of a broader restructuring aimed at streamlining operations. The affected employees will receive severance packages, including pay and benefits continuation, as well as outplacement support.

Sprout Social expects to incur charges of about $14 million related to the restructuring, primarily for employee severance and benefits. The company said the moves will help it reallocate resources toward its strategic priorities, including artificial intelligence and social intelligence tools.

The layoffs come as Sprout Social, which provides social media management software to businesses, faces a challenging economic environment. The company has been investing in AI-powered features to help clients analyze social data and automate responses, but has also been under pressure to control costs.

In a filing, the company said the restructuring is designed to improve operational efficiency and position it for long-term growth. The cuts are expected to be completed by the end of the first quarter of 2025.