Payoneer, an Israeli fintech company traded on Nasdaq with a market capitalisation of approximately $1.7 billion, is set to lay off 200 employees, representing about 10 percent of its workforce. The majority of these job cuts will be in the marketing and service departments.
Payoneer, which has around 2,000 employees with a significant portion based in Israel where its research and development activities are centred, will begin implementing these reductions this week.
The company entered the public market in June 2021 through a merger with a special purpose acquisition company (SPAC) on Nasdaq, valuing it at $3.3 billion. This move allowed Payoneer to raise over $1 billion, with proceeds going to the company’s operations as well as its founders and long-time shareholders, including former Prime Minister Naftali Bennett, who had invested in it during its early stages.
The decision to downsize at Payoneer stems from a combination of macroeconomic factors and the management’s focus on pursuing profitable growth. In the first quarter of 2023, the company experienced lower-than-expected transaction volumes for business payments made through its platform.
Consequently, the layoffs will primarily affect the marketing and service departments, while the impact on the development sector will be minimal. As a result, the number of employees laid off in Israel is expected to be relatively small.