Worldline to cut workforce by 8% with €200m cost-saving initiative Power24
Paris-listed payments firm Worldline is to cut its global workforce by “approximately 8% maximum” in an effort to realise €200 million in run-rate cost savings.
Worldline to cut 8% of workforce
The cuts are expected to result in the termination of around 1,400 positions and form part of the group’s “post-integration transformation ambition” named Power24, which launched this week.
The initiative was first set out in October last year after the company lowered its revenue expectations for 2023 in its Q3 earnings report, citing a “macroeconomic slowdown” witnessed within the group’s core markets – particularly that of Germany – as the leading factor, along with a shift in consumer spending from discretionary to non-discretionary verticals, which the group said has impacted its growth and profitability.
Aside from the intended job cuts, the initiative has also resulted in the termination of “specific merchants’ relationships whose associated costs and potential risks did not match our revised requirements”.
The company says the planned transformation is “expected to deliver c. €200 million run-rate cash costs savings from 2025”, while also incurring implementation costs of around €250 million.
Speaking on the initiative last October, Gilles Grapinet, CEO of Worldline, said the group is “ready to enter into a new phase of our company journey ready to unleash the power of our combined assets, and to make Worldline more agile to boost its growth potential”.
