Israeli freelancer platform Fiverr (NYSE: FVRR) has announced that it is laying off 60 employees, half of them in Israel. At the end of 2021, the company had 787 employees of whom 580 were in Israel, meaning that it is laying off 8% of its work force.
Fiverr's share price has fallen 89% from its peak in February 2021, after it enjoyed a positive momentum during the Covid pandemic. At its peak the company was worth well over $10 billion, while its market cap today is just $1.257 billion. The company's share price is currently down 7% at $33.87.
Two months ago when Fiverr published its first quarter results, the company cut its 2022 revenue forecast due to the macroeconomic outlook and uncertainty to $345-365 million, still up 23% from 2021, compared with its previous expectation of 27% growth. Fiverr is led by cofounder and CEO Micha Kaufman.
Fiverr said, "During recent months we decided to focus on our core business and improve the expenditure structure of the company in order to strengthen and ensure continued revenue growth and profitability, while adjusting to macroeconomic changes. This week we have completed a range of additional streamlining measures including the reduction of 60 employees (about half of them in Israel) in the company's offices around the world. We appreciate the work and contribution of these employees to our success and want to thank them for their journey with us. The company will make every effort to assist them in this process and their way ahead."
Another Israeli company has also announced layoffs. Content recommendation company Outbrain (Nasdaq: OB) is laying off 3% of its workforce - 38 out of 1,100 employees around the world, most of them not in Israel. Outbrain held its IPO last summer and since then has lost 73% of its value and currently has a market cap of $303 million.
Published by Globes, Israel business news - en.globes.co.il - on July 26 2022.
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