Zendesk

Zendesk is a cloud software developer for client service. The Zendesk platform scales easily for any business: be it a startup, home company or corporation. This is confirmed by Airbnb, Slack, Uber, Tesco, Booking.com, Box, Riot Games and more than 119 thousand customers in 150 countries. Headquartered in San Francisco, Zendesk has offices in North America, Europe, Asia, Australia and South America.

History

2023

Site blocking in Russia

Roskomnadzor (RKN) in mid-September blocked the website of the American software developer Zendesk in Russia for refusing to delete information on financial assistance to Ukraine recognized as prohibited in the Russian Federation. This was reported by Interfax.

On the basis of the Law "On Information, Information Technologies and Information Protection," Roskomnadzor limited access to a foreign zendesk.com resource in connection with the failure to remove prohibited content: materials containing information on the provision of financial support to Ukraine, the ILV reported.

Screenshot of the Zendesk website

Zendesk is an American technology company that develops and sells software for customer service, sales and other customer interactions. The company is headquartered in San Francisco. The company was founded in Copenhagen in 2007, conducted an initial public offering (IPO) on the exchange in 2014. The company left Russia and curtailed its activities in the country in March 2022.

Earlier, Roskomnadzor announced the development of criteria for blocking sites that open access to resources prohibited in Russia. As a reason for blocking, a description of how to enter a blocked site can be used. The corresponding order of the department may enter into force on March 1, 2024 and will be valid until September 1, 2029.

In addition, Roskomnadzor may begin to block sites with data on ways to gain access to VPN services. The lockdown could begin on March 1 next year. The head of the State Duma Committee on Information Policy, Alexander Khinshtein, expressed the opinion that it is impossible to prohibit Russians from using VPN services, but it is important to explain the risks of using them, since many users are unaware of them.^[1]

Reduction of 8% of the state

On May 31, 2023, the American developer of CRM systems Zendesk announced a restructuring, during which the number of personnel on a global scale will decrease by about 8%. This is a necessary measure related to the deterioration of the financial situation in the current macroeconomic situation and the crisis in the United States.

The upcoming changes were announced by Zendesk CEO Tom Eggemeier. According to him, from 2020 to 2022, the pace of recruitment of new employees was ahead of the needs of the company's business. However, the formed market situation forces to optimize the operating structure and reduce costs. In addition, according to Eggemeier, many customers were in a similar position, forced to implement advanced technologies at an accelerated pace to ensure profitability. We are talking, in particular, about the use of generative artificial intelligence. Therefore, Zendesk intends to focus on the highest priority areas, including the creation of new products that take into account the needs of customers.

Zendesk to reduce headcount by 8%

I hoped that a combination of stabilising macroeconomic conditions and optimising spending would help us avoid laying off employees. Unfortunately, the market situation has not improved and we are in the face of increasing competition, "Tom Eggemeier said.

The cuts will affect about 320 people out of more than 4,000 Zendesk employees worldwide. Dismissed employees will receive a basic salary for three months plus weekly earnings for each full year of their duties. In addition, Zendesk will pay for health insurance, provide individualized immigration support, and provide employment assistance at the new location, including drafting resumes. Personal severance benefits will be determined taking into account many factors, such as local legal requirements.^[2]

2022

Blocking service in Russia against the background of the conflict in Ukraine

On March 28, 2022, against the background of Russia's special operation in Ukraine, Zendesk announced the termination of work in Russia and Belarus. Companies that subscribe to it are offered to export data, since in two months there will be no access to them.

Refusal to sell for $16 billion

On February 10, 2022, Zendesk rejected a proposal by a consortium of private equity firms to buy a manufacturer ON for support services for $16 billion. The Zendesk takeover bidders were willing to pay between $127 and $132 per share.

Zendesk management said the company's board of directors concluded that the offer from SurveyMonkey significantly undervalued the company. Zendesk is facing calls from activist investors, including hedge fund Jana Partners, to drop its proposed acquisition of parent SurveyMonkey Momentum Global, which the company agreed to in October 2021. In November 2021, Zendesk management noted that they often have an endless supply of data, and they also lack effective and personalized information about customers. Instead, companies are left with an idea of ​ ​ the client, which is one-dimensional, impersonal and incomplete.

Zendesk support software developer refused to sell for $16 billion

Zendesk helps businesses provide online customer service by connecting brand and customers by phone, chat, email, messaging, social channels, communities, feedback sites, and help centers. The merger aimed to create a new customer information gathering company that combines feedback and service.

Zendesk shareholders are due to vote on the deal with Momentum on February 25, 2022. On February 10, 2022, The Wall Street Journal reported that Jana was preparing to nominate four directors to the company's board of directors and that Thomas Bravo had made an offer to take over Zendesk. Thoma Bravo is one of the private equity firms that has shown interest in Zendesk, but is not part of the consortium of private investors that made the offer, which the company rejected.^[3]

2021

Buying a software developer for Momentum surveys

On October 28, 2021, Zendesk announced the acquisition of Momentum for $4.13 billion. According to the press release, the buyer will receive the SurveyMonkey platform to conduct surveys, which will allow Zendesk customers to "build a more constructive relationship." Read more here.

Participation in TAdviser IT Retail Day

Customer service has changed forever in 2020, but how can business adapt to all the changes and emerge from this race as a winner? We will find the answer to this question during the speech of the representative of Zendesk Anna Menshikova 'Trends in working with client experience in 2021'. The expert will discuss the challenges faced by the client service during the 2020 crisis, and will reveal innovative approaches to solving these problems from leading companies from various industries.

2019: Morgan Stanley: Zendesk to be bought in next 12 months

In early August 2019, Morgan Stanley unveiled a list of large IT companies that bank analysts believe will be "accurately bought" over the next 12 months. Among them is Zendesk. Read more here.