Taxfix, a Europe-based mobile tax platform, has reportedly reduced its workforce by 20 per cent, resulting in the layoff of 120 employees. This cost-cutting measure comes as the company faces funding challenges in the current market conditions.
As per the media reports, the reduction in workforce follows Taxfix’s recent acquisition of Steuerbot, a startup based in Stuttgart that provides a popular chat-based tax app in Germany. Notably, the accounting startup from Germany achieved a valuation of $1 billion in 2022.
The reports suggest that the acquisition of Steuerbot has resulted in significant synergies, leading to improved operational efficiencies. As a result, the company made a strategic decision to undergo organisational restructuring. Furthermore, the move also emphasises its attention towards the macroeconomic funding landscape and the importance of positioning it as an independent entity for long-term sustainability.
Taxfix, has garnered over five million downloads in Germany, Italy, and Spain. Additionally, the fintech platform has achieved a significant milestone by facilitating over two billion euros in tax refunds for its customers.
In April 2022, Taxfix successfully concluded a Series D funding round, raising $220 million at a valuation exceeding $1 billion. Prominent investors, such as Teachers’ Venture Growth, Index Ventures, Valar Ventures, Creandum, and Redalpine, participated in this funding round.
As of February this year, Taxfix disclosed that over 500 employees, comprising tax experts, developers, and IT security experts, are based in Berlin and Madrid. Their collective efforts are dedicated to advancing the development of Taxfix’s service and expanding its product portfolio.