BigCommerce conducted another round of layoffs, letting go of 10% of its workforce, according to LinkedIn posts by former employees. The move follows a round of layoffs in both 2023 and 2022 where the company let go of 7% and 13% of its staff respectively.
BigCommerce also shared that it would be exiting some of its real estate positions and discontinuing software projects, but it did not provide specifics.
The news was buried in a Q3 financial results announcement:
“On September 30, 2024, the Company initiated a restructuring program that includes a reduction of the Company's workforce, select real estate exits within certain markets, abandonment of certain software development projects and contract amendments and terminations to better align operating expenses with existing economic conditions and the Company's strategic priorities.”
“The Company incurred $9.8 million of restructuring charges for the three months ended September 30, 2024 in connection with the 2024 Restructure, consisting primarily of severance benefits, contract termination costs, right-of-use asset impairments, lease termination gain, software impairments, and professional services costs. The Company expects to incur additional restructuring costs through fiscal 2025.”
I found out about the layoffs from LinkedIn posts of former employees who I've either directly worked with when BigCommerce was this newsletter's sponsor, or connected with as a result of my former relationship with the company. Lots of talented folks were let go, but I'm confident they'll find opportunities elsewhere. If you're hiring, I'm happy to make connections.
The headline news of BigCommerce's Q3 2024 financial announcement was that:
- The company increased revenue to $83.7M in its most recent quarter, up 7% YoY.
- Total annual revenue run-rate was $347.8M, up 5% YoY.
- Subscription solutions revenue was $62.8M, up 7% YoY.
- However number of enterprise accounts was 5,892, down 1% compared to Q3 2023. Somewhere out there is a Shopify executive taking credit for that one.
Travis Hess, the new CEO of BigCommerce, said:
“BigCommerce has been significantly underrepresented in the marketplace relative to the strength of our products. Our third-quarter revenue increased 7% year-over-year, but we have the potential to do much better. As CEO, it is my top priority to reach that potential. We are making significant changes to re-accelerate growth and re-align our team to help discerning organizations solve business problems, maximize agility and optimize revenue.”