Kaseya denies Datto’s benefit cuts

IT security and management software provider Kaseya has denied accusations that it is cutting some Datto employee benefits after the company completed its $6.2 billion acquisition last month.

In a blog post by former Datto CEO Austin McChord, it was revealed that many of the current members of the Datto team were “deeply appalled” at several workplace changes.

These are supposed to include sideline employee resource groups that support underrepresented employees, looking at budget cuts of more than 30%, reducing maternity leave to 3 weeks from 16, reducing 401k match from 4.5% to 0%, as well as reducing vacation pay from 20+10 to 17 in total.

“The method in which these changes were introduced did more damage than necessary,” he said in the post. “The communication was brutal and those who questioned it or expressed dismay were simply overwhelmed at best or summarily fired at worst.

“These departures have induced a ton of unnecessary fear in the workplace. Employees are afraid to express their opinions and give their opinion. All of this leads to many amazing people who work at Datto looking for the exits. »

However, Kaseya denies that those cuts were made. In an email from CFO Kathy Wagner to company staff, posted at Redditthe firm called the allegations “false information”.

“There is no change in the benefits of any Datto. Period,” she wrote. “To address specific concerns that have been posted online, there is no reduction in the 401K match , no change/reduction in maternity/paternity leave benefits, nor change/reduction in PTO for Datto employees.

“Furthermore, there never was, nor is there a 30% spending reduction target, or a target figure for that matter.”

Additionally, Wagner reiterated that Kaseya had “no mass layoffs planned” and was instead looking to increase investment in products, technology and customer support.

“The financial business case for Kaseya’s acquisition of Datto was one of value creation via GROWTH, as opposed to a financial business case of value creation via cost synergies. Growth is achieved through investment,” she said.

Despite the rebuttal, however, several commenters on the post expressed doubts and confusion. User ‘Exotic_Bluejay2308′ said, “On the benefit side, she tells us that nothing will change with our benefits. All other communications have been that nothing will change this CALENDAR YEAR. It was already known.

“[CEO Fred Voccola] told us that Kaseya’s perks were better (indicating they’ll likely align us with theirs in the new year), but when asked about how better they were, he gave a lot of ” I don’t know”.

Kaseya acquired Datto for $6.2 billion in June 2022 from Vista Equity Partners and public shareholders.

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