Prosus to cut 30% of corporate staff in latest tech layoffs

Amsterdam-listed Prosus NV and its mother or father Naspers Ltd. are planning to cut their corporate workforce by 30%, changing into the latest international tech firm to announce layoffs.

The agency, one of Europe’s largest e-commerce firms by asset worth, will make cuts at its corporate facilities, together with hubs in Hong Kong, Amsterdam and South Africa, Chief Executive Officer Bob van Dijk mentioned in an interview Wednesday. The job cuts will happen over the following 12 months and about 15 areas will probably be affected, he mentioned.

“The actuality is that the macro atmosphere has turn into harder and has modified lots,” Van Dijk said. “This also means that the cost of capital has changed a lot, as interest rates go up and risk premiums also go up.”

Van Dijk declined to say how many individuals would lose their jobs. Prosus employed 30,000 individuals globally on the finish of March final 12 months, in accordance to an earnings report, however these roles are unfold throughout corporate hubs and a spread of companies the e-commerce group invests in and operates, together with in labeled promoting, meals supply and web funds.

Companies from Amazon. com Inc. to Alphabet Inc.’s Google have not too long ago introduced staff reductions after years of development, as they search to decrease prices and enhance profitability. The tech sector introduced 97,171 job cuts in 2022, up 649% in contrast to the earlier 12 months, in accordance to consulting agency Challenger, Gray & Christmas Inc.

Prosus may even search to cut prices on the greater than 80 firms it has invested in, though these efforts have totally different timelines and scales, in accordance to Van Dijk. The firm has already closed some places of work and made cuts at others, he mentioned. The Euronext-listed agency beforehand closed its iFood enterprise in Colombia and its autos enterprise in Peru and Ecuador.

The measures ought to assist Prosus turn into worthwhile by the primary half of 2025, in accordance to Van Dijk.

The e-commerce agency has been engaged on narrowing the low cost between the sum of its elements and its stake in China’s Tencent Holdings Ltd. for years, with each Prosus and its Cape Town-based mother or father Naspers having taken a quantity of steps to deal with the issue.

These embrace the spinoff of its African PayTV enterprise, the creation of Prosus by way of the Euronext-listing of its web holdings, a share swap between Naspers and Prosus, and a quantity of share buybacks which can be ongoing.

Tencent, in which Prosus is the biggest investor, has already introduced job cuts in latest months. Prosus additionally owns companies throughout Europe, India, Africa and the US.

 

This story has been revealed from a wire company feed with out modifications to the textual content.

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