BigCommerce is a public company that had 5,560 enterprise customers as of Sept. 30. But now, to control costs and focus on enterprise businesses, the ecommerce platform company is laying off employees and contractors and phasing out of the low end of the B2C and B2B ecommerce markets.
As part of a restructuring plan, BigCommerce will reduce its sales and marketing expenditures in non-enterprise initiatives and its total workforce by approximately 13% across employees and contractors. “We are implementing changes that will enhance the strength of our financial profile against the backdrop of a challenging economic environment. It will also drive focus on the areas we view as having the strongest product market advantage and best long-term financial performance,” says BigCommerce CEO Brent Bellm.
For the first nine months of the year, BigCommerce posted revenue of $206.6 million, an increase of 33% from revenue of $155.0 million from the prior year. Net loss for the first three quarters of the years was $106.9 million vs. a net loss of $42.4 million in the first nine months of 2021.
BigCommerce expects the workforce changes to be largely complete by Dec. 31 and estimates the aggregate costs associated with the reduction in force to be approximately $4.2 million to $4.6 million, primarily consisting of severance payments, employee benefits and related costs, and expects to incur these charges in the fourth quarter of 2022.
BigCommerce is also evaluating its facilities footprint and its continued need for existing space for “potential impairment of the right-of-use assets associated with its headquarter facilities.” The company estimates the impairment cost will range between $2 million and $3.2 million.
To grow, BigCommerce is phasing out its concentration on ecommerce companies that pay a monthly fee vs. its enterprise customers that have 1-3 year and longer contracts. “BigCommerce will focus its go-to-market efforts on the enterprise business, where it sees the strongest unit economics and the opportunity for long-term, profitable growth,” the company says.