Checkout.com Cuts Almost A Quarter Of Its Workforce After A Revenue Drop
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Checkout.com, a UK-based payment processing firm, recently decided to cut nearly a quarter of its staff following a major drop in revenue.
The company’s accounts for 2023 show that Checkout.com saw its processing transactions go down by 13%, to $204 million. Meanwhile, the firm’s gross profits plummeted 23% to $57 million.
Commenting on the situation, Checkout.com said that the losses were driven primarily by the termination of a large merchant, which was initiated by the firm itself. The company decided to part ways with Binance, the world’s largest digital currency exchange by trading volume back in 2023, due to concerns about money laundering.
It also didn’t help that Binance was sued by the US Securities and Exchange Commission (SEC), alongside Coinbase, the largest US exchange. However, when Checkout.com decided to back away from the partnership, Binance responded with legal action.
Checkout has since said that digital currency transactions are not a focus for the firm and that they only represent a small 4% of its overall volume. Meron Colbeci, Checkout.com’s chief product officer, even commented that getting distracted and trying out too many things would have a negative effect on the company, taking away from its core business.
However, the new figures indicate that this move may have had a greater impact on Checkout than the firm expected.
Due to the drop in revenue, Checkout.com decided to reduce the headcount. The news site UKTN suggests that the number of employees who were laid off sits at 230, leaving the company with 1,083 members of the workforce.
It is also worth noting that the company’s revenue is not the only thing that suffered, as its valuation also went down. The drop was quite sharp, going from $40 billion in 2022 to only $9.35 billion in 2023.
