On April 4, 2023, Cin7 announced layoffs affecting 15% of its workforce. This decision impacts numerous employees across various departments.
Headquartered in Auckland, Cin7 operates within the retail industry. The layoffs are part of a broader strategy to streamline operations and improve financial stability.
Cin7 decided to lay off employees due to a post-pandemic shift back to physical stores and broader macroeconomic challenges. The company's growth rate has normalized to pre-pandemic levels, necessitating a reduction in workforce.
“During the pandemic, we quickly grew our business as customers accelerated their digital spend and benefited from e-commerce tailwinds. We hired a lot of great people during this time to match that growth and invested for future growth and acceleration. Today, we see SMB [small-to-medium business] and mid-market product sellers continue to grow steadily, but the rate of growth has normalised to pre-pandemic levels. We are observing broader macro turbulence and changing market conditions.”
This statement from a Cin7 presentation to staff highlights the rapid growth the company experienced during the pandemic, driven by increased digital spending. However, as growth rates have returned to pre-pandemic levels and broader economic conditions have become more turbulent, the company has found it necessary to adjust its workforce accordingly. The layoffs are part of a strategic move to align the company's operations with the current market environment.
The layoffs at Cin7 have significantly impacted its workforce, particularly affecting roles in customer support, sales, and product development. This reduction in employees may lead to slower response times and delays in product updates, potentially affecting overall customer satisfaction and operational efficiency.
In the broader industry, other companies in the retail technology sector, such as Shopify and BigCommerce, have also announced layoffs recently. These trends reflect a wider shift as companies adjust to post-pandemic market conditions and economic uncertainties.
The layoffs at Cin7 indicate a strategic pivot towards more sustainable growth and operational efficiency. Moving forward, the company aims to adapt to the evolving market landscape with a focus on core strengths.
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