Eventbrite to lay off 45% of global workforce in cost-cutting plan

Event management and ticketing platform Eventbrite has announced that it will lay off 45% of its global workforce as part of plans to save at least US$100 million in annualised expenditure.

Impacted by the cancellation of events due to the Coronavirus pandemic, the US-based company has outlined a series of cost-cutting measures, including a reduction in remuneration for Chief Executive Julia Hartz and other senior staff.

In releasing almost half its workforce - which is thought to number about 1,000 people - Eventbrite advised in a statement that it expects to incur restructuring charges of between US$10 and US$14 million. Of that amount, between US$7 and US$10 million is related to severance costs while the remainder is related to facilities and fixed assets.

Explaining the company’s predicament, Hartz explained “the Covid-19 pandemic has caused massive disruption to the live entertainment and experiences economy and we are taking significant action to navigate this unprecedented time.

“We are saddened to see many members of our team depart the company and we are supporting them in every way we possibly can during this tumultuous time. I want to personally thank our talented and dedicated teammates for contributing towards building the leading platform for independent creators.”

Earlier this week, the San Francisco-based company said it was withdrawing its first quarter and 2020 financial outlook in response to the Coronavirus crisis, which has decimated the live events industry due to global increasing cancellations.

In February, the firm reached what it called “a significant milestone” by completing the migration of former Ticketfly creators to the Eventbrite platform, and ended the year with US$190 million in available liquidity and no debt.

Eventbrite confirmed the layoffs to US publication Billboard and released the following statement advising “as a company whose mission is to bring the world together through live experiences, Eventbrite has been significantly impacted by the COVID-19 global pandemic, alongside the entire live events industry.

"This is a challenging time for communities all over the world and while we can’t predict when the pandemic will pass, we are committed to providing a strong platform to help creators rebuild their businesses and enable the return of live events when it’s once again safe to gather."