Redbubble Group will reduce its workforce by 23% in the latest round of cost-cutting measures.
The online marketplace is aiming to reduce its operating expenditure by a further $13 million to $15 million on an annualised basis. The majority of the cost savings will be achieved by reducing the group's workforce by 75 roles.
Redbubble Group CEO Martin Hosking said the business has been restructured as part of the process.
"Since being appointed CEO, my primary focus has been returning the group to profitability as soon as possible. It has become clear that to achieve this, we need to further reduce our cost base. As a result, we have made the difficult decision to remove a number of roles from the group..
“As part of this process, we have restructured our business to more clearly define the group function and two operating companies, Redbubble and TeePublic.
"We expect this new structure will allow each marketplace to operate more efficiently and effectively, with a greater focus on their individual strengths and unique value propositions. We have also ensured that we have retained the necessary capability to continue to make targeted investments in initiatives, which have delivered, or we anticipate will deliver a financial benefit in the near term.
“We believe that the steps we are taking today will best position us to bring forward our return to cash flow positive. Once achieved, we will be on a strong footing to explore future growth opportunities to unlock the group's tremendous potential.”
While the majority of the financial benefit of the cost-reduction is expected to be realised from the beginning of FY24, the group now expects its FY23 operating expenditure to be between $125 million and $130 million.
This does not include one-off restructure costs of approximately $5.1 million.
Redbubble is a global online marketplace for print-on-demand products such as apparel based on user-submitted artwork.
The company was founded in 2006 in Melbourne, Australia, and also maintains offices in San Francisco and Berlin.