San Francisco, California-based Fundbox, a platform to manage cash and credit management for small businesses, has announced a major cost containment initiative that features a 40% reduction in force.
According to the company, “As part of a broader restructure, we are reducing our workforce by about 40%, and parting ways with valued teammates across the company. This is a very painful change, especially for coworkers who are directly impacted. However, it is a necessary step to strengthen our business fundamentals so that we can execute our mission to help small business owners with their financial needs."
“Here is some context around the decision. Fundbox serves small businesses through working capital and cash flow solutions, both directly and through our partners. As macroeconomic trends continue to impact the small business economy, we, too, face material business headwinds. It is clear that these economic challenges will last for longer than we initially expected."
“Financial services are very important parts of our lives that are being transformed. “Moreover, our business grew quickly over the last two years, and we scaled our team accordingly. We brought on colleagues who have contributed enormously to our progress. But the truth is that we grew our team too fast, and we need to course correct. While we are well capitalized with over $100M in liquidity, we also need to be careful stewards of investor capital. Bringing our workforce back to our pre-pandemic size will strengthen our financial footing as we work towards becoming a profitable business, which we are not today.”
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?