French payments giant Worldline announced today it will lay off roughly 1,400 employees, representing 8% of its global workforce, as part of a cost-cutting plan launched in October, Bloomberg reported. With this, Worldline has joined a growing list of tech companies that are resorting to layoffs amid economic uncertainty and changing consumer behavior.
“Worldline confirms that it has initiated social processes with the relevant employee representative bodies within the Worldline group,” the company said and as reported by Reuters.
The move to downsize follows a tumultuous period for Worldline. In October, the company slashed its full-year revenue targets and severed ties with certain merchants due to risk concerns. These developments reportedly triggered a broader downturn in the sector, exacerbated by reduced consumer spending and heightened regulatory scrutiny.
Despite recent challenges, Worldline received a boost when French banking institution Credit Agricole acquired a 7% stake in the company last month. However, this was not sufficient to offset the adverse market reaction, with the firm’s shares plummeting following the October revelations.
With its latest layoffs, the company aims to streamline operations and bolster financial resilience amidst challenging market conditions. It expects to achieve substantial annual cost reductions amounting to €200 million by the year 2025. Additionally, it anticipates incurring implementation costs totaling around €250 million as it executes these measures.
According to the Bloomberg report, the company has operations spanning more than 40 countries and a workforce of approximately 18,000 employees. Hence, these cost-cutting measures by Worldline will likely have widespread ramifications. The company is actively engaging with labor unions to navigate the complexities associated with workforce reductions.
This news resonates with the broader layoff trend in the tech industry. Giants like Amazon, Google and Meta have announced workforce reductions, citing economic slowdowns and the need to adapt to changing market conditions. Just at the start of this week, Snap Inc., the parent company of the popular social media platform Snapchat, announced to trim 10% of its global workforce, affecting approximately 528 full-time employees.
