UK paytech GoCardless lays off 15% of its workforce
UK-based paytech GoCardless will be laying off 15% of its workforce in the UK, US, Australia and New Zealand, or about 135 roles, as part of wider cost reduction plans.
GoCardless lays off 15% of its workforce
“In light of the current economic environment, we have decided to focus our efforts on the core areas of our business and reduce our investment in initiatives with longer term payback,” Hiroki Takeuchi, CEO and co-founder of GoCardless, writes on the company blog.
In addition to layoffs, the company will also be moving 15 roles from the UK to Riga, Latvia, bringing the total number of impacted roles to 150, or 17% of its headcount. The changes will reduce GoCardless’ total headcount from 900 to less than 800.
Additionally, GoCardless is also reducing the size of its senior leadership team by 25%, “as we believe that a smaller group is more suitable to lead a smaller organisation”, it says. The company has also closed 59 job openings it was advertising for, and says it will offer these roles internally to impacted employees.
Employees who will be made redundant will receive two months’ worth of pay, pay for notice period, unused time off and any bonuses. Employees who take up voluntary exit will receive an additional month’s pay on top.
Takeuchi adds that post the company changes, he expects revenue to “continue to grow strongly”, and that the changes announced “will get us within touching distance of profitability in the near future”.
The layoffs continue
With GoCardless joining the ranks, the fintech layoffs continue.
Last week, global card issuing platform Marqeta closed down its Australia office in a bid to cut costs. Last month, German mobile tax app Taxfix cut 120 jobs and remittance platform Zepz cut 420 jobs in restructuring efforts, and German challenger bank N26 also axed 71 jobs.
US banking giants JPMorgan Chase and First Citizens cut 500 jobs each, while Morgan Stanley is reportedly set to cut around 3,000 jobs by the end of Q2 2023.
