Creative marketplace Envato is one of the first globally-focused Australian tech companies to shed jobs amid a US tech downturn, with 100 jobs to go.
While Tesla boss Elon Musk flagged cutting 10% of the EV maker’s 100,000-strong workforce, and the US tech sector shedding 16,000 jobs in May, cutting staffing continues in June, with the Winklevoss twins’ crypto platform Gemini announcing it will shed 10% of its workforce, alongside similar cuts at TomTom and 25% going from social app IRL.
Envato employs around 600 people globally, but just eight months after CEO Hichame Assi announced the opening of a New Zealand office, and plans to 100 more people, he now says it’s time to refocus.
“We’re updating our focus areas and winding down some of our ancillary products, with a view to increasing our attention and focus to our core products,” he said.
“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.
“This has meant changes to our overall business structure and as part of that, approximately 100 roles globally have been affected; some teams have been restructured, some roles reshaped and others made redundant.”
The company is still in discussions with staff over the changes, which impact on roles across the business in all of our locations: Australia, New Zealand, Mexico and the USA.
The business will offer a minimum of 12 weeks pay and other support.
It’s now around 20 months since Assi replaced Envato founder Collis Ta’eed as CEO. Ta’eed remain chair of the company he co-founded with his wife Cyan and friend Jun Rung in 2006.
The business is reportedly remains in a strong position, have posted a 14% rise in FY21 revenue to $228.5 million, with operating profit up 76% to a record $36.5 million. Nonetheless, Assi flagged when the results were released last year that the company would be operating in a more “challenged” environment in the next two to three years.
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