Zerto Shuts Its Doors in APAC. All Asia Employees Terminated.

By Aaron Raj

According to a source from within the company, the entire Zerto APAC team have been released from employment. They were informed via a series of conference calls on the morning of March 31st. These internal announcements followed hot on the heels of job cuts in Europe the evening before.

We don’t have numbers affected, but our understanding is that Zerto had staff in Singapore, Australia and Japan and no-one has been spared.

We also understand that this came as a real shock to many of the existing staff; it also seems that the rushed announcement caught Zerto partners off guard. We spoke to a few who prefer to remain off the record who were shocked as (at the time of writing) they have received no official communication from Zerto about how their business partnership will continue.

We have been unable to reach out to any Zerto customers in Asia, but even if they have received official communication from the company, no doubt some may be worrying about their investment in technology from a company that has pulled out of the region.

Zerto did release a statement saying:
“In this new economy, financial viability is key. The winning companies will be the ones who successfully transition and put themselves on a path to profitability. Zerto has today committed to streamline its core business and reduce operating expenses. We made this move to ensure that Zerto will weather this storm and will continue to be successful. It was an extremely difficult decision, but we are taking these steps to ensure that Zerto remains financially strong now and in the future.”

We at DSA feel that this is a head-scratcher, especially since they had great technology and built great mindshare, partners and customers across the Asian region. To make such significant job cuts so quickly into this pandemic makes us suspect that there Zerto might be masking more fundamental issues.

We can’t be sure, but we suspect that Zerto may have deeper issues, potentially struggling to maintain the technology gap they have held in the software-defined DR space. Recent announcements from the likes of Veeam and EMC suggest that they have been eating away at some of the unique features that used to set Zerto apart.

This would make more sense than simply making such fundamental pre-emptive cuts that lead to the company completely exiting a region.

Founded in 2009, the company had over 750 employees. We do not know what the current number is following the cuts. It remains to see what packages will be offered to the affected employees, however, at DSA we have had the pleasure of interviewing numerous Asia Zerto employees over the years, and we wish them well at what must already be a stressful time.

If you have any comments, further insights on this matter or can point out factual inaccuracies in our report, please contact us at editor@aopg.net.

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