Payoneer becomes latest fintech to cut jobs
Payoneer is to reduce its company headcount by 9% having succumbed to the changing economic landscape and shifting industry demand.
A regulatory filing made with the US Securities and Exchange Commission (SEC) at the beginning of this week indicates that the New York-based payment platform’s workforce reduction plan is expected to “enhance productivity and efficiency” and “streamline the company’s organisational structure to better align operations with its growth objectives”.
The filing also states that Payoneer, which currently employees close to 2000 people across 14 locations, intends to complete the implementation of this announcement 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 is also estimated to incur charges of approximately $5 million in connection with the cuts. This figure is primarily derived from cash expenditures for severance payments and payroll taxes, and will also be incurred by Q3 2023.
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.