GoCardless, a UK-based payments firm, has implemented a 15 per cent layoff in its global workforce. The move comes as the company navigates through scarce funding opportunities. The objective is to decrease the company’s cost structure by approximately 15 per cent.
In an internal message to employees, Hiroki Takeuchi, CEO, unveiled the comprehensive plan for cost reduction to the employees and subsequently made it available on the company’s website. Moreover, the company has made the decision to prioritise its core business areas and reduce investment in initiatives that yield returns over a longer period of time.
According to Takeuchi’s post, approximately 135 positions will be eliminated, resulting in a total headcount of less than 800 for the fintech company. While the impact will be felt in the UK, US, Australia, and New Zealand, no job cuts are planned for France. Additionally, GoCardless intends to transfer 15 positions from the UK to Riga.
The company has different ways to convey the news to all of the employees. As per the statement, the employees in UK will receive an internal notification letter assessing the likelihood of their roles being affected, while staff in Australia and New Zealand will receive theirs by 9am tomorrow. Rest of the employees will receive the notification over the coming weeks.
Furthermore, the company has also announced plans to reduce its senior leadership team by approximately 25 per cent. It has made it clear that a smaller group is better suited to guide a smaller organisation.