Envato cuts 100 jobs – Startup Daily
Creative marketplace Envato is one of the first globally-focused Australian tech companies to cut jobs amid a US technology crisis, with 100 jobs to go.
As Tesla boss Elon Musk marked the cut of 10% of the EV maker’s 100,000-strong workforce, and the US tech sector cut 16,000 jobs in May, staff reduction will continue in Junewith the Winklevoss twins’ crypto platform, Gemini, announcing that it will cut 10% of its workforce, in addition to similar cuts at TomTom and 25% from its social app IRL.
Envato employs about 600 people worldwide, but just eight months after CEO Hichame Assi announced the opening of a New Zealand office and plans to hire an additional 100 people, he now says it’s time to refocus.
“We are updating our focus areas and discontinuing some of our ancillary products, with a view to increasing our focus and focus on our core products,” he said.
“We believe a renewed and sharpened business focus will ensure that we continue our long-term growth trajectory, which requires nothing less than our goal: to empower creators to thrive independently and as a community, striving to make creative success accessible feasible and accessible to everyone.
“This has led to changes in our overall corporate structure and as part of that, approximately 100 functions worldwide have been affected; some teams have been restructured, some roles have been reformed and others have become redundant.”
The company is still in talks with staff about the changes, which will affect roles across the company in all of our locations: Australia, New Zealand, Mexico and the US.
The company provides a minimum of 12 weeks’ wages and other support.
It has now been about 20 months since Assi replaced Envato founder Collis Ta’eed as CEO. Ta’eed remains chairman of the company he founded in 2006 with his wife Cyan and friend Jun Rung.
The company is reportedly still in a strong position, posting FY21 revenues up 14% to $228.5 million, and operating profits up 76% to a record $36.5 million. Nevertheless, when publishing its results last year, Assi indicated that the company would operate in a more “challenging” environment over the next two to three years.
