Kaseya denies Datto benefits cuts

IT management and security software provider Kaseya has denied accusations that it will cut some Datto employee benefits, following completion of the firm’s $6.2 billion acquisition last month.

In a blog post by former Datto CEO Austin McChord, it was revealed that many current members of the Datto team had “reached out deeply dismayed” at several workplace changes.

Those are alleged to include side-lining employee resource groups that support underrepresented employees, looking at budget decreases over 30%, reducing maternity leave to 3 weeks from 16, reducing 401k matching from 4.5% to 0%, as well as reducing vacation allowance from 20+10 to 17 total.

“The method in which these changes have been introduced has done more damage than necessary,” he said in the post. “Communication has been heavy-handed and those who have questioned it or expressed dismay have been simply overrun at best or summarily terminated at worst.

“These departures have induced a ton of unnecessary fear into the workplace. Employees are afraid to voice their opinions and give feedback. All of this is causing many incredible people who work at Datto to look for the exits.”

However, Kaseya denies that these cuts have been made. In an email from CFO Kathy Wagner to company staff, posted to Reddit, the firm described the allegations as “false information”.

“There are zero changes to the benefits of all Datto. Period,” she wrote. “To address the specific concerns that were published online, there is no reduction in 401K match, no change/reduction in maternity/paternity leave benefits, nor changes/reductions in PTO for any Datto employees.

“In addition, there was never, nor is there a goal of reducing expenses by 30%, or any targeted number for that matter.”

Additionally, Wagner reiterated that Kaseya has “zero mass layoffs planned” and is instead looking to increase its investment in products, technology, and customer support.

“The financial business case for Kaseya acquiring Datto was one of value creation through GROWTH as opposed to a financial business case of value creation through cost synergies. Growth is obtained via investment,” she said.

Despite the rebuttal, however, several commenters on the post expressed doubt and confusion. User ‘Exotic_Bluejay2308’ said: “On the benefits side, she is telling us that nothing will change with our benefits. Every other communication has been that nothing will change this CALENDAR YEAR. That was already known.

“[CEO Fred Voccola] told us Kaseya’s benefits were better (indicating that they likely will align us with theirs in the new year), but when grilled on how they were better he gave a lot of "I don't knows".”

Kaseya acquired Datto for $6.2 billion in June 2022 from Vista Equity Partners and public shareholders.