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Envato confirms redundancies are underway with as many as 100 roles on the line

Australian-born digital asset marketplace Envato has confirmed redundancies are underway, with as many as 100 roles within the company impacted by a new restructuring process.

SmartCompany understands staff members were informed of the decision this week, with redundancies and retrenchments allegedly reaching as many as one in seven employees of the Melbourne-based firm.

Envato was understood to employee around 600 people in 2020.

In a statement to SmartCompany, CEO Hichame Assi confirmed “approximately 100 roles globally” have been affected by changes to Envato’s business structure.

“Some teams have been restructured, some roles reshaped and others made redundant,” he said Thursday morning.

The process will impact roles spread across Australia, New Zealand, Mexico and the USA.

Departing employees will receive no less than 12 weeks’ pay, an Envato spokesperson said.

Impacted staff members will have access to outplacement services paid for by Envato, with in-house staffers also offering those employees CV support, LinkedIn advice, and directions to external opportunities, should they be available.

The decision comes as Envato works on “updating our focus areas and winding down some of our ancillary products,” Assi added, with Envato doubling down on its “core” offerings.

“We believe a renewed and sharpened business focus will ensure we continue on our long-term growth trajectory, which is nothing less than our purpose demands: to empower creators to thrive independently and as a community, where we strive to make creative success accessible and achievable for all,” he said.

Redundancies at Envato have arrived as significant economic volatility and changing market sentiments batter the fortunes of tech firms at home and abroad.

Founded by married duo Collis and Cyan Ta’eed in 2006, Envato offers creatives and web designers access to digital assets and templates through its suite of marketplaces and subscription services.

In 2019, the company was considered to operate in the realm of Australia’s ‘unicorns’ with an estimated valuation nearing $1 billion.

However, Cyan Ta’eed says the company’s valuation was hard to gauge, and its tight-knit group of shareholders had other metrics for measuring success.

“It doesn’t feel like something that is worth focusing on a great deal because you just don’t know how it stands up,” she said.

In 2020, Envato said it dished out $3.75 million to its employees as part of its revenue sharing scheme.

The story is originally published on Smart Company.

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