Eventbrite will lay off 45 per cent of its global workforce as part of plans to save at least $100m in annualised expenditure.
In a statement, the San Francisco-based company outlined a series of cost-cutting measures, including a reduction in remuneration for chief executive Julia Hartz and other senior figures, as it seeks to weather the impact of the Covid-19 outbreak.
In releasing almost half its workforce – it is thought to employ about 1,000 people – Eventbrite said it expects to incur restructuring charges related to the workforce reduction of between $10m and $14m on a pre-tax basis. Of that amount, between $7 and $10m is related to severance costs and between $3m and $4m is related to facilities and fixed assets.
The company said it expects the majority of these charges to be incurred in the second quarter of 2020, with most of the balance expected to be incurred in the remainder of 2020.
Up to $10m is expected to result in future cash expenditures, with Eventbrite stating it would provide additional details when it reports first quarter results.
Hartz said: “The Covid-19 pandemic has caused massive disruption to the live entertainment and experiences economy and we are taking significant action to navigate this unprecedented time.
“We are saddened to see many members of our team depart the company and we are supporting them in every way we possibly can during this tumultuous time. I want to personally thank our talented and dedicated teammates for contributing towards building the leading platform for independent creators.”
Earlier this week, the San Francisco-based company said it was withdrawing its first quarter and 2020 financial outlook in response to the Covid-19 crisis, which has decimated the live industry due to ever increasing cancellations.
Eventbrite has seen its share price fall 65 per cent in the last year from a 52-week high of $25.04 to a 52-week low of $5.71.
In February, the firm reached what it called “a significant milestone” by completing the migration of former Ticketfly creators to the Eventbrite platform, and ended the year with $190m in available liquidity and no debt.
An industry observer told TheTicketingBusiness at the time: “In its letter to shareholders Eventbrite states that ‘over 70% of the Ticketfly book of business had migrated to the Eventbrite platform’ by 31 December 2019, which implies nearly 30% of the previous business has left Eventbrite – and that was after it had paid more than $200m for it.”