Buffer is laying off 11 percent of employees

Social media management software company Buffer today announced that it’s laying off 11 percent of its employees — exactly 10 people.

Buffer founder and CEO Joel Gascoigne published a long blog post on the news. He addresses mistakes made and the steps the company is taking to fix the problems. Among other things, he and fellow cofounder Leo Gascoigne are taking a 40 percent salary cut, and the company has canceled its retreat to Germany — together those two changes will save nearly $500,000. The layoffs will save another $585,000. And this way, the company will not see its bank account hit zero. In fact, the company will become profitable again, Gascoigne wrote.

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Currently Buffer has $10.5 million in annual recurring revenue, he wrote.

Buffer is the latest company to lay off employees in the past few months. Others include Automatic, Evernote, Indiegogo, Instacart, and Mixpanel.

Buffer chose to avoid raising more funding.

“We expect further fundraising to be in our future, however we would like the company to be completely healthy from a financial standpoint, so that we can raise funding on terms we feel fully happy about, and so that we can always walk away if we feel that is better for Buffer,” Gascoigne wrote in the blog post.

San Francisco-based Buffer’s competitors include Hootsuite and SocialFlow.