Pegasystems to Cut Jobs in Shift to AI-First Delivery Model -- Update

Dow Jones01-13

By Colin Kellaher

Pegasystems will cut less than 2% of its staff as the software company works to better align roles and capacity to an artificial-intelligence-first delivery model.

The company on Monday said the moves primarily would affect its consulting organization, adding that it expects to substantially complete the organizational changes in the first quarter.

A Pegasystems spokesperson said the Waltham, Mass., company, which has more than 5,400 employees according to data from FactSet, is eliminating fewer than 100 global positions.

Pegasystems said AI is raising client expectations for speed, precision and results and transforming how the Waltham, Mass., company delivers value with reliability and scale.

The company said it expects to book a charge of about $13 million in the fourth quarter of 2025, mainly related to cash severance and related benefit costs for terminated employees.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

January 12, 2026 12:59 ET (17:59 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

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