Austin-Based Tech Firm SpiceWorks Inc. To Lay Off 59 Workers

AUSTIN, TX — SpiceWorks Inc., an Austin-based technology firm, is laying off 59 local workers following its recent acquisition by a New York company, according to documents filed with the state.

The company detailed the move as required by provisions of the Worker Adjustment and Retraining Notification Act of 1988 (WARN Act), a federal labor law designed to protect workers and their families by compelling employers with 100 or more employees to provide advance notice of layoffs.

The layoffs are expected at the company's offices at 3700 N Capital of Texas Highway, a company representative wrote to the Texas Workforce Commission in a letter secured by Patch. Workers started getting laid off on Aug. 14 as part of a process that will conclude Oct. 31, the company officials said.

In an Aug. 15 article predicting the layoffs, the Austin Business Journal describes Spiceworks as a technology company that developed a marketplace and network for information technology professionals. The publication detailed the then-planned acquisition by New York-based Ziff Davis B2B, a global marketing company that operates brands including IGN, Mashable, Humble Bundle, Speedtest, PCMag and Offers.com.

The joining of the companies was expected to result in layoffs at both firms, the publication noted in referencing a blog post by Spiceworks founder and CEO Jay Hallberg.