Eventbrite
## Eventbrite Announces Significant Workforce Reduction
### Overview of Layoffs
On Thursday, the event ticketing platform Eventbrite revealed plans to eliminate approximately 100 positions, which accounts for around 11% of its total workforce. This move comes as part of broader efforts to manage operational costs amid declining stock performance.
### Financial Impact
The decision is set to result in an estimated $7 million expense related to severance packages and other associated costs. Earlier this year, in February 2023, the company had already reduced its staff by about 8%.
### Employee Insights on Organizational Changes
An anonymous source within Eventbrite shared their expectation of these layoffs due to a noticeable decline in the company’s stock value over recent months. Currently, shares are trading at roughly half their value compared to January’s figures.
### Earnings Report and Revenue Trends
In a simultaneous earnings release, Eventbrite reported a net revenue increase of 7% year-over-year for Q2 at $84.6 million; however, gross ticket sales experienced a decline from $890 million in Q2 2023 to $840 million in Q2 2024—a decrease close to 6%. The company has subsequently adjusted its revenue projections downward for both the third quarter and fiscal year ahead.
Following these announcements, shares plummeted approximately 18% during after-hours trading.
### Commitment to Financial Prudence
In communication with shareholders, the company stated: “Given our revised revenue expectations and our ongoing commitment to fiscal responsibility, we have implemented crucial measures aimed at substantially lowering our operating expenses.”
## Leadership Reorganization
As part of these changes announced on Thursday, Lanny Baker will be elevated from his role as CFO to Chief Operating Officer (COO) alongside his current financial responsibilities. Additionally, Samantha Wu joins from Meta as the new Chief Marketing Officer.
