The Melbourne technology company blamed inflation, the invasion of Ukraine and rising competition as a reason for the layoffs, despite record operating profits.
An Australian company that grossed $ 228.5 million last year has laid off 100 employees.
Melbourne-based Envato, which runs a marketplace that offers access to things like photographs, graphic design templates, audio and fonts, blamed economic factors such as inflation and Russia’s invasion of Ukraine. such as increased competition in the sector.
Although the company is valued at more than $ 1 billion Australian Financial Review Rich List CEO Envato Hichame Assi said the layoffs were part of the need to upgrade its “focus” and commodities after 16 years of operation.
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He said Envato, which saw a 76 percent jump in operating profits to a record $ 36.5 million in 2020/21, had to invest in more complex products as things like storage images are increasingly available.
“Affected roles are found throughout the business and are not concentrated in one specific area, and cover all of our locations: Australia, New Zealand, Mexico and the US. This is a global shift in our focus and product approach.” he told news.com.au.
“We started making changes last week and meetings with impact roles are ongoing until the end of this week.”
Envato had hired 700 people before the layoffs and his Melbourne office has a basketball court and a pool table, a piano and a space invaders table in the dining room.
Assi noted the impact of the Ukrainian invasion on creatine with a significant amount of its authors based in Russia or Ukraine, from WordPress developers to video producers and everything in between.
“The war has clearly had an impact on our creative community given the number of creators living in the region, however, it is not the only factor in this decision; we need to take into account the rapid changes in market conditions that are relevant to our sectors, “he added.
“We were too thin on all the products we had established. While they are all creative products, some are older with legacy platforms.”
According to Assi, employees affected by the layoffs are offered a 12-week salary, they can keep the company’s laptops, and Envato’s hiring team helps them with their resumes and finds new jobs.
Envato is not the only Australian company to be fired this year.
5B Solar, an Australian company focused on solar energy projects, laid off 25 per cent of its workforce two weeks ago.
He blamed the disruptions in the supply chain and logistics caused by the pandemic, as well as the shortage of materials and rising prices caused in part by the invasion of Ukraine.
The company had just completed a capital increase that began in August last year, which would inject $ 30 million into the business. He also plans to raise $ 20 million more.
Last month, buy now, pay later, BizPay provider, which has offices in Sydney, was another company that made a series of cuts.
He made 30 percent of his workforce redundant by blaming market conditions, however, the company was in the process of trying to raise $ 25 million in financing and had partially completed it.
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