ConnectWise Hit With Layoffs During Summer Workforce Rebalancing

‘Some change is expected as new leadership comes in as we integrate teams from acquisitions, so we continue to focus on Asio and delivering that platform experience,’ says ConnectWise CMO Angus Robertson.

ConnectWise has laid off fewer than 100 people across the company due to “some duplication that we had from the acquisitions and integration that we did,” according to one executive at the firm.

Last September, ConnectWise acquired both Axcient and SkyKick to expand the company’s cybersecurity and data protection portfolios.

“Some change is expected as new leadership comes in as we integrate teams from acquisitions, so we continue to focus on Asio and delivering that platform experience,” ConnectWise CMO Angus Robertson told CRN. “We’ve got over 40 different products, taking those down to eight core applications, all on that same platform. Manny (Rivelo, ConnectWise CEO) built a really strong team. There has been some pretty significant change in terms of Manny’s team, and with that comes some more change.”

In 2024, the Tampa, Fla.-based vendor ushered in Manny Rivelo as its new CEO who told CRN at the time “over the course of 2025 we will definitely have more customers migrating (onto Asio) and we will definitely begin to take net new logos onto that platform.”

The Asio platform consolidates critical business functions such as monitoring, automation, reporting, ticketing, project management and security services into a single, unified platform streamlining operations and reducing risk for MSPs.

The round of layoffs primarily affected mid-level employees, according a source close to the situation who asked to remain anonymous. The cuts come amid “ongoing pressure to accelerate product development and improve financial performance,” the source told CRN.

Layoffs began in June and have continued into August in a staggered approach and have mostly impacted product management and mid-level roles, the source said.

“There’s been a clear shift in culture,” they said. “It’s become very action-oriented. If you’re not directly moving the company forward, in product or in sales, you’re being scrutinized.”

The layoffs, they said, also come at a time of increasing scrutiny for the company under private equity ownership by Thoma Bravo, which acquired the vendor in 2019.

“It’s not a surprise to those who’ve been watching,” they said. “There’s been momentum issues internally. ConnectWise’s much-anticipated Asio platform has been in the works for four years, and it’s only now finally starting to be used by MSPs in pilot programs. It’s finally live, but it’s not yet where it needs to be. It’s make-or-break time.”

Paco Lebron, founder and CEO of Chicago-based MSP ProdigyTeks, said that while any workforce reduction at the company is difficult, he’s watching closely to see if the changes will streamline operations and refocus the company’s product mission.

“It’s unfortunate when any type of staff layoffs occur,” he told CRN “But I’m curious to see how these layoffs might actually benefit the platform. After such a long development cycle, it will be interesting to watch whether this helps rejuvenate their mission, both with Asio and future products in the ConnectWise ecosystem.”

As of April 2024, ConnectWise had about 3,000 employees globally.