Austin’s BigCommerce Implements Another Round of Layoffs Amidst Restructuring Efforts

Austin’s BigCommerce Faces Tough Times with Another Round of Layoffs

Austin, known for its vibrant tech scene and cultural flair, is facing some disappointing news from one of its homegrown companies. BigCommerce, an e-commerce platform that helps businesses set up their online shops, is implementing yet another round of layoffs as part of a significant company restructuring. This decision comes on the heels of two previous rounds of layoffs over the past two years, leaving many employees feeling uneasy about their future.

What’s Going On?

So, what led up to this latest decision? Well, the company reported a 7% revenue growth in the third quarter, but unfortunately, that growth fell short of expectations. They described this latest move as part of a broader “strategic transformation” aimed at re-energizing growth and solidifying their market position. In plain English, they’re shaking things up to try to get back on track.

In a statement provided to MySA, BigCommerce emphasized that they are “aligning our go-to-market teams” to better target their efforts towards organizations and brands across various sectors, including B2C and B2B. Their goal? To enhance customer satisfaction and expand product adoption across their entire business portfolio.

The Impact on Employees

As part of this restructuring, BigCommerce announced a reduction in their workforce. Although they haven’t disclosed the exact number of employees affected, the wave of layoffs has left many feeling uncertain. In fact, around 12 employees took to LinkedIn to share their layoff announcements, with positions spanning from human resources to software development.

One affected employee, Ivy P., posted, “Today, the BigCommerce layoff fairy paid me a visit. After a very rewarding journey as Web Experience Manager, I’m now exploring new opportunities.” This sentiment resonates with many as they transition to an uncertain job market.

Support for Those Affected

For those impacted by the layoffs, there is some support in place. The affected employees in the US are eligible for extended healthcare benefits and severance packages, which include three weeks of pay continuation plus an additional eight weeks of severance, with more offered based on tenure. It’s a difficult but necessary step that the company has labeled as “proactive” for their long-term success.

What Happens Next?

As part of this restructuring, BigCommerce is also eliminating some real estate positions and winding down specific software initiatives. Just recently, they underwent a leadership change, with the departure of former CEO Brent Bellm. It’s clear that the company is making big moves to reshape its future.

Ellen Siminoff, executive chair of the board, provided some insight during an earnings call, stating, “Despite our growth and many achievements over the last several years, our operational performance has fallen short of expectations.” It’s a tough pill to swallow, but they are committed to making adjustments in hopes of brighter days ahead.

The Big Picture

Currently, BigCommerce employs about 417 people in Austin, which adds to the concern in the tech community about job security and the future of local businesses. With the continued pressure on their growth, it seems like this won’t be the last we hear about changes at BigCommerce.

For many in Austin’s tech scene, this news serves as a reminder of the volatility of the industry. As businesses like BigCommerce navigate their way through challenging times, employees and supporters alike are hoping for a turn of fortunes as they look towards what’s next.

In the meantime, we’ll keep our ears to the ground for any more updates from this evolving story. Stay tuned as we follow how BigCommerce’s journey unfolds!