UK fintech Paddle cuts 8% of workforce
London-based fintech Paddle, which provides payments infrastructure for software companies, is laying off around 8% of its total workforce as the company looks to “adapt to what will be leaner times going forward”.
Paddle lays off around 8% of its total workforce
Founder and CEO Christian Owens sent a memo to employees last week informing them of the decision, which he has since shared on LinkedIn.
Explaining the reasons behind the cuts, Owens writes: “During COVID we were beneficiaries of the world shifting to a more remote, and digital way of working.
“The world is now undergoing another change: inflation, as a result of our collective COVID response, higher interest rates, and a shift in investor sentiment away from growth technology companies. We’re starting to see how this shift will impact not just Paddle, but all of our customers too.”
Owens says that as “the world is beginning to change, it is important for us to change with it”.
“In 2023 we need to focus on ambitious but achievable goals, whilst diligently controlling and reducing our costs,” he adds.
Paddle integrates checkout, payment, subscription management, invoicing, international taxes and financial compliance processes under one platform.
In May last year, it secured $200 million in a Series D funding round led by KKR, taking its valuation up to $1.4 billion. Later that month, the firm acquired ProfitWell, a provider of subscription metrics and retention software, in a deal worth more than $200 million in cash and equity.
Owens concludes by saying the layoffs position the firm “to weather the storm ahead, and support our customers as they weather it too”.
Paddle becomes the latest in a long list of financial and technology firms to announce layoffs over the last few months as the sector continues to be impacted by inflation, interest rate hikes, the invasion of Ukraine, wider market uncertainty, and a looming global recession.
