Software consultancy firm Thoughtworks cuts about 500 jobs

(Reuters) – Software consultancy firm Thoughtworks Inc said on Wednesday it laid off 4% of its global workforce, or roughly 500 employees, joining a host of U.S. companies looking to cut costs amid a sobering economic outlook.

Tech firms have laid off thousands of workers recently as they brace for a period of lower demand, high interest rates and macroeconomic instability.

“These changes were necessary to support the future growth of our business,” a spokesperson for the company said.

Chicago, Illinois-based Thoughtworks, which helps firms digitize their operations, has more than 12,500 employees working across 18 countries.

In its latest earnings report on Tuesday, Thoughtworks forecast first-quarter revenue decline of 5% to 5.5%. Analysts are expecting it to decrease by 2.3%, according to Refinitiv data.

Shares of the company were down 3.3% to $7.12.

(Reporting by Eva Mathews in Bengaluru; Editing by Krishna Chandra Eluri)