BigCommerce Undertakes Mass Layoff Despite Growing Revenue In Latest Earnings Release
Ecommerce platform BigCommerce announced Q3 2024 earnings last week, revealing they have initiated a round of mass layoffs despite growing revenue 7% year over year.
The restructuring news was tucked into the earnings press release along with other important business highlights from the quarter, including the appointment of Travis Hess as the new CEO.
In addition to workforce reduction, the restructuring plan includes reducing real estate footprint, abandoning some software development projects and terminating or amending some contracts to better align operating expenses.
AUSTIN, Texas , Nov. 07, 2024 (GLOBE NEWSWIRE) -- BigCommerce Holdings, Inc. (“BigCommerce” or the “Company”) (Nasdaq: BIGC), an open SaaS, composable ecommerce platform for fast-growing and established B2C and B2B brands and retailers, today announced financial results for its third quarter ended September 30, 2024.
“BigCommerce has been significantly underrepresented in the marketplace relative to the strength of our products,” said Travis Hess, CEO of BigCommerce. “Our third-quarter revenue increased 7% year-over-year, but we have the potential to do much better. As CEO, it is my top priority to reach that potential. We are making significant changes to re-accelerate growth and re-align our team to help discerning organizations solve business problems, maximize agility and optimize revenue”...
...Restructuring
On September 30, 2024, the Company initiated a restructuring program (the "2024 Restructure") that includes a reduction of the Company's workforce, select real estate exits within certain markets, abandonment of certain software development projects and contract amendments and terminations to better align operating expenses with existing economic conditions and the Company's strategic priorities.
The Company incurred $9.8 million of restructuring charges for the three months ended September 30, 2024 in connection with the 2024 Restructure, consisting primarily of severance benefits, contract termination costs, right-of-use asset impairments, lease termination gain, software impairments, and professional services costs. The Company expects to incur additional restructuring costs through fiscal 2025.
While the company did not provide official details about the extent of the layoffs, LinkedIn posts by some affected employees indicate it may have been ~10%.
Stay tuned for updates in this developing story.
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