Eventbrite Plans to Lay Off 8% of Staff; Outsource Other Roles
Industry March 2, 2023 Dave Clark 0
Eventbrite (NYSE: EB) has decided to shrink its workforce, announcing this week that it planned to lay off about 8% of its staff. The company will also relocate approximately 30 percent of the jobs that remain to other countries – including the majority of its customer support and operations roles.
According to reporting of the plans by Reuters, Eventbrite had 881 full-time employees as of December 31, of which 508 were U.S.-based.
The restructuring is designed to stay in front of a potential economic downturn, which could harm the ticketing platform catering to independent event operators just as it looks to turn the corner following the long pause on in-person events due to the pandemic.
News of the job cuts came on the same day as Eventbrite reported its Q4 2022 financial numbers, which showed a net income of $4.0 million for the company, compared to a loss of $16.8 million for the same period a year prior. Its adjusted EBITDA was $11.1 million, also well above the prior year number of $4 million. Net revenue was $71.5 million, up 20 percent.
“Our strong fourth quarter and full year financial results reflect great execution in enabling creator success and growth. We powered the experience economy with $3.3 billion of ticket sales in 2022 as consumers attended 5 million total events offered by our creators. New tools, like Ads, are making an impact for creators who rely on Eventbrite to build their audience using our scale and marketplace,” said Julia Hartz, co-founder and Chief Executive Officer.
“As industry leaders, we will continue to innovate on marketing and demand generation capabilities that help creators share their unique content with a bigger audience of consumers. We’ve taken the difficult and important steps to restructure our business to accelerate toward a two-sided marketplace and our long-term financial targets. We are focused on the opportunity to help our customers grow faster while driving improved profitability, sustainable growth and increased shareholder value.”
News of the job cuts helped company stock jump this week, surging about 10% on Wednesday morning following Tuesday’s post-trading announcement. It closed on Thursday trading at $9.58, nearly double its late December low of $5.30, but still far from its post-COVID high of nearly $25/share reached in March of 2021.
The full shareholder letter with more details about Eventbrite’s Q4 financial numbers is available here (PDF)
Last Updated on March 2, 2023 by Dave Clark
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