Better Collective has confirmed that it will be making personnel cuts after lowering its full-year financial targets.
Last week, the Copenhagen-headquartered affiliate announced that it was making €50 million (£41.9 million/$54.3 million) cuts with its estimated financials for full-year revenue now lowered to the range of €355-375 million, down from €395-425 million, and EBITDA of €100-110 million reduced down from €130-140 million.
In a statement on LinkedIn, CEO Jesper Søgaard revealed that the plan to downgrade the financial targets also includes parting ways with employees, however, he did not reveal the number or type of jobs at risk.
He did go on to thank those who will be affected, saying that “each of them has played a role in shaping Better Collective into what it is today, and for that, I owe them all a big thank you.
“The decision was not made lightly, but prompted by lower than expected performance, in particular, due to shifts in the US market as well as a continued slowdown in commercial activities in Brazil in anticipation of the upcoming regulations,” added the CEO. “Markets that in recent years have been growth drivers for BC and which we still believe have strong long-term growth potentials ahead.”
Søgaard concluded that while the company focuses on navigating these difficult challenges, he still believes things will improve. “I remain confident that we will emerge stronger as a group and are well-equipped for the long-term growth opportunities ahead.”
Better Collective said it will provide further details on the cuts when issuing its full Q3 interim numbers on 13 November.