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Javier Quesada/Unsplash
Software company Trade Window plans to cut up to 35 roles, mostly in research and development. (File photo)
NZX-listed tech company Trade Window plans to cut up to 35 roles as the sector faces a “challenging funding market.”
The trade logistics software company said it had begun consultation on proposal to reduce its workforce by about one-third and “reduce cash usage to a more sustainable level.”
Most of the affected roles would be in its research and development team, and the changes would not impact the company’s ability to serve customers, meet market demand or generate revenue, chief executive AJ Smith said.
The proposed changes reflected a more conservative approach to its R&D investments in a challenging funding market, Smith said.
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Earlier this month, the company announced it had secured just $5.4 million in a $20m share offer.
Melissa Ansell-Bridges, secretary of the Council of Trade Unions, says a quarter of workers haven’t had a pay rise in more than two years.
However, demand for Trade Window’s solutions remained high and investment continued in a “targeted and focused way,” Smith said.
“This is a challenging time for the team at Trade Window. We are supporting our team members through this difficult time, particularly those impacted by these changes.”
Trade Window was in discussions with potential strategic investors and exploring alternative funding sources.
Updated financial projections for the 2024 and 2025 financial years would be provided after the consultation process, which was expected to be about the end of March.
Guidance for the current financial year remained in place and Trade Window confirmed it had no exposure to Silicon Valley Bank or any other US financial institution.
Founded in December 2018, Trade Window provides digital solutions for exporters, importers, freight forwarders, and customs brokers.
The global technology sector has been hit hard as the economic boom the industry rode during the Covid-19 pandemic ebbs.
On Wednesday, Facebook parent Meta announced it would lay off 10,000 staff – on top of 11,000 roles axed in November – and close vacancies for 5000 roles.
Tech giants Google, Amazon and Microsoft also recently announced tens of thousands of job cuts.
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