BigCommerce is shrinking its workforce to go big on its enterprise B2B and B2C customers.
The ecommerce platform applications development and services company is public and had 5,560 enterprise customers as of Sept. 30. But now, to control costs and focus on enterprise businesses, BigCommerce is laying off employees and contractors. It’s also phasing out of the low end of the B2C and B2B ecommerce markets.
As part of a restructuring plan, BigCommerce will reduce its sales and marketing expenditures in non-enterprise initiatives. It will also reduce its total workforce by approximately 13% across employees and contractors.
“We are implementing changes that will enhance the strength of our financial profile against the backdrop of a challenging economic environment,” says CEO Brent Bellm. “It will also drive focus on the areas we view as having the strongest product market advantage and best long-term financial performance.”
BigCommerce revenue through Q3 2022
For the first nine months of the year, BigCommerce posted revenue of $206.6 million. That’s a 33% increase from $155.0 million in revenue the prior year. Net loss for the first three quarters of 2022 was $106.9 million. That compares with a net loss of $42.4 million in the first nine months of 2021.
BigCommerce expects the workforce changes to be largely complete by Dec. 31. It estimates the aggregate costs associated with the reduction in force to be approximately $4.2 million to $4.6 million. The costs would primarily consist of severance payments, employee benefits and related costs. The ecommerce platform company said it expects to incur these charges in the fourth quarter of 2022.
BigCommerce is also evaluating its facilities footprint and its continued need for existing space for “potential impairment of the right-of-use assets associated with its headquarter facilities.” The company estimates the impairment cost will range between $2 million and $3.2 million.
To grow, BigCommerce is phasing out its concentration on ecommerce companies that charge a monthly fee versus its enterprise customers that have 1-3 year and longer contracts.
“BigCommerce will focus its go-to-market efforts on the enterprise business, where it sees the strongest unit economics and the opportunity for long-term, profitable growth,” the company says.
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