Israeli e-commerce platform Global-e Online (Nasdaq: GLBE) today confirmed that it is implementing 'belt tightening' measures. The company is laying off 5% of its workforce - 40 out of 800 employees, mainly due to overlapping function in companies that have been acquired over the past year, including development roles in Global-e.
Global-e held its IPO on Nasdaq in May 2021 at a company valuation of $3.6 billion. The company's share price soared from $25 to $81.70 at its peak but has since fallen back to $22.72.
Global-e CEO Amir Shlachet declined to confirm the number of layoffs but has confirmed what he called 'belt tightening.' He said, "We are doing what all responsible management is doing right now and making sure that we will be ready for any scenario. It is important to put the facts in context: we have doubled the company's workforce to about 800 people, part of it organic growth and part of it the product of acquisitions we have made. We have greatly increased development, sales, support and finance activity We have now reached a point in time where we need to take a break and make adjustments.
"It is true that we see storm clouds in the global economy and consumer markets, and uncertainty looking ahead, but our situation as a company is solid. We will stick to all the procedures involved in the process, and the employees who leave us will receive respectable compensation packages from us, far beyond what is required by law."
Published by Globes, Israel business news - en.globes.co.il - on November 6, 2022.
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