Redbubble cuts staff to manage costs
Online marketplace Redbubble is to cut 14 per cent of the group’s staff to reduce costs as trading remains “challenging”.
In a trading update including unaudited results for the half year to December 31, the business says its underlying marketplace revenue (MPR) is up 2 per cent to $290.4 million after momentum improved during the second quarter.
However, increased promotional activity to attract new and existing customers impacted its gross profit after paid acquisition (GPAPA) margin.
Apparel sales in the US remained “relatively resilient” offset by its discretionary categories, such as wall art and homewares.
Michael Ilczynski, CEO of Redbubble, said: “We expect consumer demand to remain challenging in the near term.
“We have decided to reduce the cost base within the Redbubble marketplace to accelerate the group’s return to cash flow positive. These are hard decisions and I am sorry for the impact this will have on our people.”
Additionally, the group is suspending investment in Redbubble brand awareness and reducing overall general costs to “align” with business priorities. It has revised its FY23 operating expenditure to a range of between $125 million and $135 million while its MPR remains broadly in line with the previous year.
Further financial details will be revealed when the group releases its audited half-year results next month.
Comments are closed.