GoCardless, a UK payments unicorn backed by Google parent company Alphabet, has become the latest company to announce workforce cuts – following a sharp decrease in e-commerce investment last year.
The London-based company will be cutting 15% of its staff, equating to around 135 roles across the UK, US, New Zealand and Australia.
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In a statement on Monday (June 12), CEO Hiroki Takeuchi said the workforce cuts were part of a company-wide initiative to decrease costs by 15%.
Senior leadership roles will reportedly be cut by 25%, Takeuchi said.
Takeuchi remained optimistic about the future and claimed the cuts will get the company “within touching distance of profitability in the near future.”
“This will make us one of very very few technology companies that is generating hundreds of millions of dollars in revenue, growing fast, and being profitable,” he said.
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By GlobalDataIn February, the fintech firm raised $312m in a Series G funding round, bringing its valuation up to just over $2bn.
The announcement comes as global investment in e-commerce plummeted in 2022.
According to research firm GlobalData, investment in e-commerce totalled $55bn in 2022 dropping from a record high of $156bn in 2021.
The investment peak in 2021 followed steady growth throughout 2019 and 2020, which saw global investment rise from $74.3bn in 2019 to $97bn in 2020.
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