Payoneer Global announces 9% workforce reduction

On July 10, 2023, Payoneer Global announced a plan to reduce its workforce by approximately 9% of the company’s current total headcount. The company expects that the implementation of the Plan will be substantially completed by the end of the third quarter of 2023. The Plan is expected to enhance productivity and efficiency and streamline the company’s organizational structure to better align operations with its growth objectives. The company intends to reinvest some savings from the Plan into future growth initiatives, and to continue hiring for roles essential to those initiatives in areas such as research and development. Decisions regarding the elimination of positions are subject to local law in the various jurisdictions in which the company employs its teams. The company estimates that it will incur charges of approximately $5M in connection with the Plan, which are expected to be incurred in the third quarter of 2023. These expected costs are primarily related to cash expenditures for severance payments and payroll taxes. Charges incurred in connection with the Plan will be excluded from Adjusted EBITDA, which is consistent with the company’s past presentation. Additionally, the Company expects an annualized future benefit to its operating expenses of approximately $20 million in connection with the Plan. The company is still evaluating the positive impact the Plan will have on its 2023 guidance as disclosed on May 9, 2023. The above estimates are based on certain assumptions and actual amounts may differ materially from such estimates.