Cloud incident response provider PagerDuty has announced a sweeping restructuring effort, eliminating approximately 15% of its global workforce to streamline operations.

Following the cuts, the company forecasts a third-quarter fiscal 2027 operating margin of 26.5% to 27.5%. Leadership stated the realignment is essential to securing long-term operational efficiency.

The aggressive cost-reduction strategy mirrors moves across the enterprise software sector, where tech firms continue prioritizing bottom-line health and sustained profitability over rapid payroll expansion.