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GoCardless CEO Hiroki Takeuchi, speaking on the MoneyConf platform, is attending the Web Summit 2021 in Lisbon, Portugal.
Harry Murphy | math file | Getty Images
the alphabet-GoCardless British fintech-backed unicorn She said she would cut her global headcount by 15%, cutting $135 in an effort to cut costs.
The layoffs will affect jobs in the UK, US, Australia and New Zealand, reducing senior leadership by 25% and reducing the company’s total workforce to less than 800. Fifteen separate positions will be moved from Britain to the Latvian capital, Riga.
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Founded in 2011, and based in London, GoCardless processes direct debit payments — recurring transactions drawn from a customer’s bank account for things like subscriptions and billing — for its corporate clients.
CEO Hiroki Takeuchi said the cuts are part of the company’s plans to cut costs by 15%, adding that the GoCardless business strategy will not “fundamentally” change.
Payments company recently It raised $312 million in a Series G funding round in February, at $2.1 billion. Its backers include the venture capital investment arm of Alphabet GV, BlackRock, and Permira.
Takeuchi painted an optimistic picture of the company’s prospects despite the layoffs.
“We can see that our earnings will continue to grow strongly, and the changes we’re announcing today will bring us within striking distance of profitability in the near future. This will make us one of the very few technology companies generating hundreds of millions of dollars in revenue that is rapidly growing and profitable.”
The decision comes amid mounting pressure in the tech start-up sector, where funding has been skydiving and still on track to shed another 39% to just $51 billion in 2023, down from $83 billion in 2022, according to the venture capital firm. Atomico.
Takeuchi hinted at the company’s renewed focus on profitability to CNBC in comments at last week’s Money 20/20 conference.
“We need to be disciplined,” he told CNBC’s Ryan Browne at the time, “and we need to be careful and be more careful about how we spread our investments and make sure we’re really driving that growth in a more profitable way.” .
– CNBC’s Ryan Brown contributed to this report
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