Fintech Company Payoneer To Lay Off 10% Of Its Global Workforce

Payoneer, a fintech company based in Israel, is participating in a new round of layoffs. The payments company has a market capitalization of around $1.7 billion, and it has now announced a plan to lay off 200 employees that comprise around 10% of its workforce.

Payoneer to lay off 10% of its workforce

Around half of the employee base at Payoneer, which includes around 2,000 employees, is located in Israel. The company commenced its operations in 2005, and over the years, it has been ranked as one of the most promising unicorns across Israel.

Payoneer runs a payments and clearing market targeting small and medium-sized businesses in the country. The company operates using a business model that is inspired by collecting a commission on the payments that have been made on the platform. Recently, the company released a dedicated solution through a partnership deal with Mastercard.

The majority of the effects of these layoffs will be felt in the marketing and service departments at the company. The main operations at Payoneer are based in Israel, with the research and development activities being concentrated in the region.

One of the main accomplishments that have been made in Payoneer since the company debuted its operations was listing on Nasdaq following a merger with a Special Purpose Acquisition Company that valued the company at $3.3 billion. During the process, the company managed to raise more than $1 billion dollars worth of funding.

Payoneer appoints a new CEO

In March, the company said that Payoneer had appointed John Caplan as the new full-time CEO at the company. The report also noted that the new management had launched a fresh strategy that emphasized targeting large customers that would turn around profits while creating a new version of the payments platform that the company relies upon.

Caplan’s appointment took effect on March 1, 2023. On the other hand, Scott Galit was also appointed as a Senior Advisor in the company, and he will continue to be a member of the Board of Directors.

Caplan and Galit both served as the CEO of Payoneer during a transition period that was initially announced in March last year. During the same time, the deputy CFO at Payoneer, Bea Ordonez, was promoted to CEO effective from March 1, 2023.

While speaking on his appointment as CFO, Galit said that the company’s record results in 2022 had built on its long track record of delivering value to customers. The company was also projected to have a consistent source of revenue and an adjusted EBITDA growth.

“I am incredibly excited about Payoneer’s future and look forward to staying involved in my new role. My transition with John has gone very smoothly, and I have full confidence that John, Bea, and the strong team we have will continuously strive to make it easier for SMBs to succeed in global commerce and deliver value for our customers, employees, and shareholders for many years to come,” Galit said at the time.