GoCardless, the global leader in recurring payments, is to cut 17% of staff. „The changes we are announcing today will get us within touching distance of profitability in the near future.” – CEO says.

UK payments unicorn GoCardless is to cut 17% of staff in a bid to shave 15% off its cost base and rediscover its scrappy startup energy.

„Today we shared details of a proposed cost reduction plan with employees at GoCardless. These plans will see us reduce our cost base by ~15% and will affect 17% of the roles at GoCardless.” – says  Hiroki Takeuchi, the CEO of the company, in a blog post. This will reduce GoCardless overall headcount from just over 900 today to below 800 post these changes.

„Our goal is to build a sustainable business for the long-term, which means we are constantly looking for ways to improve our business operations. In light of the current economic environment, we have decided to focus our efforts on the core areas of our business and reduce our investment in initiatives with longer term payback.” he added.

Other statements related to cost reductions, getting profitable and new opportunities

„We are going to realign our business by focusing on fewer things and reducing our cost base. Our strategy won’t be changing fundamentally, however, we will do more in sequence vs parallel.„

„We will be reducing the size of our senior leadership team by around 25% as we believe that a smaller group is more suitable to lead a smaller organisation.”

„We are recruiting only for roles aligned to our top priorities.”

„We can see that our revenue will continue to grow strongly, and the changes we are announcing today will get us within touching distance of profitability in the near future. This will make us one of very very few technology companies that is generating hundreds of millions of dollars in revenue, growing fast, and being profitable.” 

„There is more and more focus on A2A payments as a disruptive change in the world of payments. Over time, I’m really confident that these tailwinds will prevail – we just need to make sure we position ourselves to take advantage of them.”