Sezzle to Trim 20 Percent of North American Workforce
Sezzle’s logo

Sezzle to Trim 20 Percent of North American Workforce

The company, which is set to be acquired by an Australian competitor, says the move will help drive profitability and free cash flow.
Sezzle’s logo

Minnesota fintech company Sezzle Inc. plans to cut about 20 percent of its North American workforce, the company announced last week.

Sezzle, which is based in Minneapolis but is publicly traded in Australia, characterized the decision as a move “toward profitability and free cash flow” in a filing with the Australian Stock Exchange. Sezzle provides a quasi-credit platform that enables customers to make purchases instantly and then pay them off over time. It’s generally referred to as a “buy now, pay later” platform.

The company expects to save about $10 million in annual costs through the layoffs, though the move will require an initial one-time charge of $500,000, according to the filing. Sezzle is apparently trimming positions across the board: The company noted that the workforce reduction will touch “nearly all business operations.”

In a statement, Sezzle CEO and executive chair Charlie Youakim said that the company is “now at an important juncture.”

“Sezzle’s growth prospects remain unchanged, and these actions position the company to maximize its long-term success,” he said. “These decisions are not easily made as we greatly value our team members.”

It’s not immediately clear how many Sezzle employees will be let go. In its 2020 annual report, Sezzle said it had a total headcount of 280 full-time employees.

Word of the layoffs came shortly after Sezzle announced that it will be acquired by an Australian competitor. In late February, Australia-based Zip Co. Ltd. said it reached an agreement to buy Sezzle for about $356 million. Workforce reductions are not entirely uncommon in the wake of acquisitions as companies trim redundant positions.

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