Payoneer, a payment platform headquartered in New York, has announced plans to decrease its workforce by 9% due to shifts in the economic landscape and industry demands. The company aims to enhance productivity, improve efficiency, and align its organizational structure with its growth objectives, as stated in a regulatory filing submitted to the US Securities and Exchange Commission (SEC).
Currently employing nearly 2,000 individuals across 14 locations, Payoneer plans to complete the implementation of this workforce reduction plan by the end of Q3 2023.
It has forecast an annualised future benefit to its operating expenses of approximately $20 million as a result of the redundancies. With this, the fintech is planning to reinvest into “future growth initiatives”, including hiring for “essential” roles in areas such as research and development.
However, the fintech company is projected to encounter expenses of approximately $5 million associated with the workforce reductions. These expenses primarily include cash outlays for severance payments and payroll taxes. Payoneer will bear the costs by Q3 2023.
Payoneer has enjoyed a prosperous year up until this point, landing its UK e-money licence back in February, while also welcoming a string of new hires.
However, for those who are familiar with the latest movements of the industry at large, the news will most likely fail to come as a surprise. Players including UK paytech GoCardless, German challenger N26, Morgan Stanley, JP Morgan Chase and First Citizens are just a few of the companies to experience similar cuts in this year alone.