Discover Payoneer's strategic workforce reduction, expected annual savings, and its potential positive impact on the company's financial position for 2023
Layoffs
July 11, 2023
Payoneer Global Inc., a leading fintech company, has recently announced its decision to reduce its workforce by 9%. As part of this strategic move, approximately 210 positions will be affected out of its total 2,336 employees across 41 locations in 36 countries. The company aims to optimize its operations and streamline its resources to enhance efficiency and competitiveness in the global market.
To facilitate the restructuring process, Payoneer will incur a one-time charge of $5 million in the third quarter, covering severance and other related expenses. While this decision may result in short-term costs, the company anticipates significant long-term benefits that will positively impact its financial position and overall performance.
Payoneer expects to achieve annual savings of approximately $20 million as a result of the workforce reduction. By aligning its resources more effectively, the company aims to optimize its operational efficiency, reduce redundant roles, and improve productivity across various functions. These cost savings will provide Payoneer with additional flexibility to invest in key growth areas and advance its innovative solutions for customers worldwide.
As Payoneer evaluates the impact of this workforce reduction on its 2023 outlook, the company remains committed to ensuring a positive trajectory for its future performance. While the specific impact is still being assessed, the decision to realign its workforce is expected to contribute to enhanced profitability and operational agility in the long run.
According to analysts surveyed by FactSet, Payoneer is expected to achieve 2023 earnings of 12 cents per share, with estimated revenue amounting to $815.7 million. With the cost savings generated from the workforce reduction, the company has the potential to further strengthen its financial position and meet or exceed these projections.
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