Dive Brief:
- Payoneer, the New York City-based company specializing in cross-border payments, plans to cut 9% of its employees by the end of Q3, according to a Monday filing with the Securities and Exchange Commission.
- Payoneer employed 2,336 people across 36 countries as of Dec. 31, 2022, according to the company’s most recent annual filing with the SEC, meaning the job cuts will affect about 210 employees. The cost of severance and payroll tax tied to the cuts is expected to amount to $5 million, according to the filing.
- The company expects the cuts to result in an annualized future benefit of about $20 million, according to the filing. Payoneer plans to invest some savings in “future growth initiatives” and continue hiring in areas such as research and development, the filing said.
Dive Insight:
Payoneer joins digital payments company Stripe, buy now, pay later provider Affirm, card issuing fintech Marqeta and recurring payments fintech GoCardless in announcing a round of job cuts this year.
Payoneer CFO Bea Ordonez had suggested job cuts were coming during the company’s first-quarter earnings conference call in May, when she said Payoneer was considering “further headcount efficiencies.” Payoneer was already in the midst of a company-wide hiring pause, which was supposed to save $5 million this year.
Despite that, company executives said they were still scouting for acquisition opportunities. During the earnings call, CEO John Caplan told analysts, “We believe M&A will play a meaningful role in our growth strategy and are actively evaluating opportunities.”
Caplan called out areas the company would look to make investments in, including accounts payable, accounts receivable, lending solutions and high growth markets like Latin America.
Payoneer did not respond to requests for comment.
