Ecommerce technology provider commercetools has confirmed layoffs reducing approximately 10% of its workforce as part of a broader strategic restructuring.
The company, a leader in “headless commerce” solutions, cited the need for realignment after not meeting ambitious revenue growth targets. The commercetools layoffs, which impact employees across multiple departments, were accompanied by changes in executive leadership.
“Commercetools has made targeted adjustments to select teams as part of a strategic realignment. While these changes affect a small percentage of our workforce, we remain committed to supporting our employees through this transition,” the company stated. “Commercetools continues to see strong momentum and remains focused on helping businesses build modern commerce experiences with flexibility and choice.”
Commercetools provides API-driven solutions that enable businesses to integrate and customize their e-commerce platforms across various sales channels. Its clients include B2B bakery supplier Dawn Foods, pet retailer Pet Valu, and mining equipment manufacturer Normet Oy, all of whom leverage Commercetools’ technology to enhance their digital commerce strategies.
Technology vendor commercetools confirms layoffs
In a memo to employees, CEO Andrew Burton acknowledged the challenges faced by the company.
“While we’ve made meaningful progress and our business continues to grow, over the last several quarters, we haven’t fully achieved our aggressive revenue growth targets,” Burton wrote.
As a result, commercetools is undergoing major restructuring affecting marketing, sales, human resources, finance, and internal operations, as reported by TechCrunch.
Leadership changes are also part of the restructuring effort. The company’s chief revenue officer and chief financial officer have departed, while responsibilities previously held by the chief information security and compliance officer have been reassigned. Additionally, some customer and product development positions were eliminated following a performance review, according to industry sources.
Commercetools experienced significant growth during the pandemic, achieving a $1.9 billion valuation as online shopping surged. However, shifting economic conditions and evolving e-commerce trends have necessitated a reassessment of its growth strategy, as reported by TechCrunch.
The layoffs at commercetools reflect a broader trend in the e-commerce technology sector. In January, Digital River Inc. announced the closure of its Minnetonka, Minnesota headquarters, impacting on 122 employees, including remote workers nationwide. The company, a veteran in B2B e-commerce, payments, and marketing services, is set to finalize the closure by the end of March, according to regulatory filings with the Minnesota Department of Employment and Economic Development.
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