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Financial comparison website Finder, co-founded by cryptocurrency enthusiast Fred Schebesta, is making about 40 staff redundant in the second wave of lay-offs at the company in just the last three months.
The repeated cuts at Finder, which follow a fortnight after fellow Australian technology company Mr Yum made its second round of redundancies, are a mark of a deepening downturn in the industry that is forcing some executives to acknowledge previous cost savings were not enough.
Finder, which was founded in 2006 and makes money by referring users to the products it compares, had announced in early February it was making about 15 per cent of its then 500-strong workforce redundant after a troubled foray into cryptocurrency and a broader technology industry downturn.
Finder CEO Frank Restuccia, left, with co-founders Jeremy Cabral and Fred Schebesta in happier times.Credit: Louie Douvis
Companies that need to do lay-offs typically try to cut staff in one go to avoid repeatedly battering morale and stoking fears that more redundancies are coming. On Tuesday, a Finder spokesman confirmed it was doing a further “restructuring” that will eliminate about 40 roles globally as part of a move to simplify its business and put relatively more resources toward the Australian market.
"We are confident this puts the business in a strong financial position to continue to help consumers make better financial decisions through particularly challenging economic times," the spokesman said.
The Melbourne-headquartered QR code food ordering company Mr Yum announced in August last year that it was laying off about 17 per cent of its staff to make its cash reserves last longer as deteriorating economic conditions made it harder to raise more money from investors.
The funding turnaround has not abated, with figures from start-up investor survey Cut Through Venture showing a 20 per cent less money had flowed in the first quarter of 2023 than the year before and 50 per cent less than 2021.
In late March its chief executive, Kim Teo, announced another 40 layoffs to "to get to profitability with our current cash reserves". The company did not respond to a request for comment.
In August last year, high-profile US technology investors Bill Gurley and David Sacks warned companies that small rounds of layoffs of less than 30 per cent were “all of the pain and none of the gain” because their cost impact was limited but they badly damaged morale. “If you are going to do it, try to do it only once,” Gurley said.