Eventbrite To Layoff 8 Percent Of Its Workforce And Relocate Its Employees As A Cost-Cutting Measure
Eventbrite is laying off 8 percent of the workforce. The decision has been taken as a cost-cutting measure. In addition, Eventbrite has decided to shift 30 percent of its total headcounts to Spain and India from the US and Argentina.
Eventbrite, a global self-service marketing, ticketing, and experience technology platform has stated that the company is laying off 8 percent of the workforce. The decision has been taken as a cost-cutting measure. In addition, Eventbrite has decided to shift 30 percent of its total headcounts to Spain and India from the US and Argentina.
The co-founder and Chief Executive Officer of Eventbrite has said in an interview mentioning that the company has experienced strong fourth-quarter and full-year financial results. It has been due to the great execution undertaken by the company in enabling the success and growth of the creators. They have even opened up stating that they have powered the experienced economy with 3.3 billion USD of sales of tickets in 2022. The exceptional results have been due to the wide base of consumers attending the events organized by the creators. New tools like ads have been driving the creators who depend on the self-service company to build their audience base using the scale and the marketplace.
She has even added that the company will continue to innovate in marketing and generation of market capabilities as the industry leader. It has helped the creators to share their unique content with the audience. They have taken the difficult and integral measure to restructure their companies which would help them to accelerate to form a two-sided marketplace and meet their long-term financial targets.
They have focussed on the opportunity to help the customers grow faster while driving sustainability, profits, and increased value of the shareholders.
Previously, the stocks of Eventbrite have performed exceptionally well rebounding to 52 percent. But the stocks have not performed well in the last three years. The share price has deteriorated by 58 percent during the period. The layoffs in the platform may have come from the fact that Eventbrite did not make a profit over the last twelve months. There has not been much revenue growth in the period. The company’s total revenue declined by 14 percent in the last year.
At the same time, the last twelve months did not perform exceptionally well for Eventbrite’s shares and has cost the investors 37 percent.
Eventbrite’s Present Balance Sheet accounts for 4 percent profit:
Eventbrite, Inc. (EB) recently announced a $4 million fourth-quarter net income, compared to a loss for the same period last year.
The San Francisco-based business reported a net income of 4 cents per share.
The outcomes exceeded Wall Street’s predictions. A loss of 15 cents per share was the average prediction of the six analysts surveyed by Zacks Investment Research. In the time period, the company reported revenue of $71.5 million, exceeding Street expectations. Zacks surveyed seven analysts, and they projected $70.8 million.
The company stated that its loss for the year decreased to $55.4 million, or 56 cents per share. The amount of revenue was $260.9 million.
Eventbrite forecasted revenue for the current quarter, which ends in March, in the range of $73 million and $76 million.
Revenue for the entire year is anticipated to be in the $321 million to $330 million range.
Eventbrite stocks have not made much recognition in the news but the self-service has enjoyed an excellent year, more than 65 percent of the present date. The results have been reflected as a boom in the economy after the neutralization of the effects of covid-19.
The layoffs are regarded as the first major news that the company has reported in recent months.
While the company has been steadily growing, it is not contributed to the layoffs and the restructuring process. The data of December 31, 2022, has shown that the company has a total headcount of 881 full-time employees. Of these, 508 were working in the United States and the rest were employed in other locations. The company has even stated that it will initiate the change by the end of the year.
An 8 percent reduction in the workforce will imply that 70 workers will be affected by the restructuring process. The numbers are not drastic but are large enough for the investors to take into account.
But, the fact that the news of the job cut has not caused the decline in the stocks recently implies that the investors are confident about the company’s ability to continue growing despite the operational changes being carried out.
edited and proofread by nikita sharma