Marqeta shuts down Australia operations

Dive Brief:

Marqeta, which provides card-issuing and financial services, said it’s shuttering its outpost in Australia as part of a cost-cutting effort to boost efficiencies by doing more from its Oakland, California base.
The company has eliminated about ten jobs in that country and two more in Singapore as part of previously announced job cuts as it pulls back from local service for the Asia-Pacific region, said James Robinson, a spokesperson for the company. The employees in Australia were mainly remote with an office in Melbourne, he said in an interview.
The news was tipped off by a LinkedIn post Monday from Duncan Currie, who previously led the operation, saying the office was closing “immediately” and noting seven colleagues who were now available for hire.

Dive Insight:

Marqeta, which said earlier this month that it would reduce its employee workforce by 15%, or about 150 employees, has been trying to streamline and right-size the company in the interest of producing profits.

The fintech will save between $40 million and $45 million on an annual operating expense basis by way of the cost reduction plan to be implemented in the second quarter, Marqeta’s Chief Financial Officer Mike Milotich said during a first-quarter earnings call with analysts to discuss the results.

The changes come as the company operates under the leadership of a new CEO, Simon Khalaf, who took over from founder Jason Gardner in January.

Even though the company has made the decision to “downscale the Australia operation,” it will still serve all its customers operating in that country, including buy now, pay later company Afterpay, and offer to service those seeking to launch operations in the region, Robinson said.

Marqeta had its first transactions in the region in 2020, before it had any workers on the ground there, and hired Currie to open its facilities there the following year, Robinson said.

The company isn’t shutting down any other international operations at the moment. Currently, it has a presence in North America, including Canada, and in Europe.