Sprinklr is planning to operate under an enterprise-first model moving forward, with “mom-and-pop shops” being pushed to the back of the queue.
Speaking during the company’s Q4 2025 earnings call, Rory Reid, CEO & President of Sprinklr, outlined what he referred to as “Project Bear Hug.”
In a nutshell, the project will see the vendor targeting its top 500 enterprise customers by protecting and stabilizing this base and looking to expand their business.
Sprinklr sees these accounts – which may currently only use one or two elements of the company’s suite – as opportunities for growth.
Over time, these customers may expand into CCaaS, conversational AI, social media management, and beyond, leveraging key elements of Sprinklr’s suite in unison.
Indeed, Reid explained how renewals and deal expansions will become a key part of the company’s go-forward strategy.
He views bundling Sprinklr’s full array of solutions as the simplest and most effective way for both the company and the client to achieve the greatest level of success. The CEO explained:
Our customers value Sprinklr when we knit these solutions together, and we create a differentiated customer experience.
Despite this focus on enhancing current clients, Reid still referenced the importance of net new logos and “feeding the engine.”
However, when it came to new business from smaller operators, he was notably flippant.
He described $5,000 and $12,000 deals for “mom-and-pop shops” as a distraction, claiming that Sprinklr is an “enterprise software company with gold standard customers.” Reid continued:
Our top 500 accounts are the most important in the world. Adding a couple of mom-and-pop shops … that’s going to be a distraction. We can double back on that in a couple of years.
While it is understandable for the company to want to prioritize bigger businesses that will allow Sprinklr to grow and improve, Reid’s words may make smaller brands on Sprinklr question their future.
Sprinklr’s Ideal Customer
Elsewhere on Sprinklr’s earnings call, Reid shared examples of strong enterprise customer relationships that he wishes to recreate.
This includes “one of the largest technology companies in the world.”
Having recently secured an eight-figure multi-year renewal with the business, Sprinklr’s platform is helping it diversify its contact center channel mix and overlay conversational AI.
Now, the company is accelerating toward its goal of achieving over 50 percent call deflection by 2027.
This shift has already led to millions of dollars in service cost savings, along with faster resolution times and improved customer satisfaction.
The deal represents precisely what Reid is targeting with Project Bear Hug, as the customer continues to deepen its investment in Sprinklr, expanding the use of the full suite across marketing, social, and insights to enhance engagement and drive operational efficiency.
Reid also discussed a deal with one of the “world’s premier specialty coffee retailers,” which is currently deploying Sprinklr Social and Sprinklr Insights to help deliver greater value for its international CX.
The deal includes a scalable, unified solution that supports global business needs, enabling the coffee provider to proactively monitor its presence, protect its reputation, and leverage social publishing and engagement to turn customer insights into more effective marketing.
More Layoff Lowdown
Away from Project Bear Hug, the company’s recent layoffs were also discussed during the call.
Having originally been announced last month, in total, approximately 15 percent of Sprinklr’s workforce (500 employees) will be cut.
The latest round of layoffs follows earlier workforce reductions of three percent in May 2024 and four percent in early 2023, impacting around 200 employees in total.
Despite these cuts, the company stated it will continue hiring in key areas aligned with its strategic priorities, with the layoffs described as being part of a broader restructuring effort.
During the most recent call, Reid confirmed that the majority of the cuts have now been made, with only a few remaining areas to be finalized in the second quarter due to regulatory requirements.
The CEO admitted that the layoffs were “hard to make” but “essential” in helping the company move forward from the difficult financial position it has been in.
This sentiment was echoed by Manish Sarin, Chief Financial Officer at Sprinklr, who claimed that the restructuring was “necessary to better execute our ambidextrous strategy.
This restructuring is intended to help position the company for long term success by realigning employee costs with the current business and freeing up capital for incremental investments.
Sprinklr Surpasses Q4 Earnings and Revenue Estimates
When it comes to the actual finances, Sprinklr reported fourth-quarter revenue of $202.5 million, up four percent year-over-year, with subscription revenue rising three percent to $182.1 million.
While that beat analyst estimates, it’s down from the revenue growth of 22 percent this time last year.
Reid’s job is to help reaffirm those growth rates, and Project Bear Hug is seemingly his answer.
