BigCommerce, the Austin-headquartered e-commerce platform, has once again found itself in the throes of restructuring, initiating layoffs for the third consecutive year. This news surfaced following an earnings release, which disclosed a revenue growth of 7% in the third quarter—a figure that has evidently failed to meet company expectations. The layoffs were part of a “strategic transformation,” the company is said to have undertaken to “re-accelerating growth and strengthening our market position,” as stated in a report by
MySA
.
In an earnings call on November 7th, the executive chair of the board, Ellen Siminoff, acknowledged that despite growth, operational performance did not align with the company’s aspirations.
Siminoff reportedly said,
“Despite our growth and many achievements over the last several years, our operational performance has fallen short of expectations,” echoing the sentiment that greater strides in performance were necessary. This attempt to realign its workforce comes after prior staff reductions of 13% in 2022 and 7% in 2023. The times have been tough for staffers, with about 12 former employees turning to LinkedIn to announce their departures, their roles spanning across various departments within the company.
Travis Hess, who recently stepped into the CEO position at BigCommerce, also emphasized a similar narrative of underrepresentation in the market relative to the company’s offerings. “BigCommerce has been significantly underrepresented in the marketplace relative to the strength of our products,”
Hess remarked
. His priority at the helm is to maximize the company’s growth potential according to information published by
ValueAddedResource
. The comprehensive restructuring plan hints at broader shifts beyond layoffs, including scale-backs on real estate, software project cancellations, and a thorough review of contracts, purportedly to better align operational expenses with strategic priorities.
The restructuring has not been without its costs. BigCommerce reportedly incurred $9.8 million in related charges during the third quarter of 2024, a figure that encompasses severance, contract termination costs, and other related expenses. The company anticipates additional charges to accrue through fiscal year 2025, underscoring the profound impact this transition will have on its balance sheet. Despite not revealing official layoff numbers, posts by affected individuals on LinkedIn suggest that the scope may hover around 10%. These moves, reflective of an ongoing strategy to recalibrate its course, mark another pivotal moment in the company’s history.
For those affected by the layoffs at BigCommerce, the conversation unfolds as the tech community takes to social media and industry forums to discuss the current wave of restructuring in the tech sector. This developing story continues to highlight the volatility within the tech industry, where even companies witnessing growth are not immune to the difficult decisions that accompany the constant pursuit of optimizing business operations and financial health. If you’ve been impacted by layoffs at BigCommerce and wish to share your story, discussions are ongoing, and requests for confidentiality will be respected.
Note: Thank you for visiting our website! We strive to keep you informed with the latest updates based on expected timelines, although please note that we are not affiliated with any official bodies. Our team is committed to ensuring accuracy and transparency in our reporting, verifying all information before publication. We aim to bring you reliable news, and if you have any questions or concerns about our content, feel free to reach out to us via email. We appreciate your trust and support!
Leave a Reply