Redbubble axes staff in latest cost reduction move
Australian e-commerce marketplace, Redbubble and its subsidiaries have implemented cost-reduction measures to achieve positive cash flow. The company plans to axe almost a quarter (23 per cent) of its staff as it seeks to reduce overheads by $13 million to $15 million.
Although the decision was difficult, Redbubble CEO and MD, Martin Hosking, said they believed it was necessary for the company’s financial recovery.
“Since being appointed CEO, my primary focus has been returning the group to profitability as soon as possible,” he explained.
“It has become clear that to achieve this; we need to reduce our cost base further. As a result, we have made the difficult decision to remove a number of roles from the group.”
Hosking added that the company had restructured its business to clearly define its function and two operating companies – Redbubble and TeePublic – and allow each marketplace to operate more efficiently.
He also ensured that the company retained its capability to make targeted investments in initiatives that have delivered or are expected to deliver financial returns.
“We believe that the steps we are taking today will best position us to bring forward our return to cash flow positive,” Hosking said.
“Once achieved, we will be on a strong footing to explore future growth opportunities to unlock the group’s tremendous potential.”
With the cost reduction measures in place, the company expects its FY23 operating expenses to be between $125 and $130 million.