Pleo undertakes fresh round of job cuts, around 50 laid off

Overview

Pleo, the Copenhagen-based spend management fintech, has carried out a fresh round of job cuts, with around 50 staff understood to be laid off. The cuts hit Pleo's Offering teams, which span product, tech, design, and data, with most of those affected in engineering and data roles. The reductions follow about 100 layoffs last year and a 15 percent workforce cut in 2022.

Key Takeaways

Pleo laid off around 50 staff in cuts that took place last week.
The cuts affected Pleo's Offering teams across product, tech, design, and data.
The majority of those affected held engineering and data roles, including some at senior level.
The latest cuts follow around 100 layoffs last year and a 15 percent reduction in 2022.
Pleo said the changes would strengthen focus and simplify decision-making.

Stats & Key Facts

#Around 50 staff were laid off in the latest round.
#Around 100 workers were laid off last year.
#Around 300 people worked across Pleo's Offering teams before the cuts.
#Pleo employs more than 800 people.
#Pleo has raised more than $430 million in funding.
#Its services are used by over 40,000 businesses.

The Latest Cuts

Pleo reduced headcount across its product organization.

›Around 50 staff are understood to have been laid off.
›The cuts took place last week.
›They were across Pleo's Offering teams, which span product, tech, design and data roles.

The majority of those impacted held engineering and data roles, including some at senior level, according to sources. It is understood around 300 people worked across the Offering teams before the cuts.

Who Was Affected

The reductions hit multiple European markets.

›Staff in Denmark, the UK, and Germany were impacted.
›Denmark is Pleo's home market.
›Engineering and data roles bore the brunt of the cuts.

The geographic spread reflects Pleo's offices across Europe, which include London, Madrid and Berlin alongside its Copenhagen base.

Pleo's Explanation

The company framed the cuts as part of a transformation.

›Pleo said the changes would strengthen focus and simplify decision-making.
›It said it has been undergoing significant transformation over the past year.
›It described the moves as designed to accelerate product delivery for customers.

A Pleo spokesperson said the proposed changes reflect the increasing role of new technologies in how product and technology teams operate, and are part of the company's effort to continue its growth as a leader in spend management in Europe.

A Pattern of Layoffs

The latest cuts continue a multi-year trend.

›The latest cuts follow around 100 layoffs last year.
›Pleo also made job cuts in 2022, laying off around 15 percent of its workforce.
›The company now employs more than 800 people.

The repeated rounds of reductions point to ongoing restructuring at the fintech over several years.

Company Background

Pleo is an established European spend management player.

›It started life in Copenhagen in 2015.
›It was co-founded by fintech veterans Jeppe Rindom and Niccolo Perra.
›It is backed by Creandum and Seedcamp.

Pleo provides European businesses with spend management tools including company cards, employee expense reports, credit and treasury products. Its services are used by over 40,000 businesses.

Funding and Valuation History

Pleo's valuation has swung over recent years.

›It has raised more than $430 million in funding.
›In 2021 it raised $150 million at a $1.7 billion valuation, then $200 million at a $4.7 billion valuation six months later.
›Last year investor Kinnevik cut the value of its stake, implying a $1.62 billion valuation.

The implied valuation decline from $4.7 billion to $1.62 billion reflects the broader repricing of late-stage fintech companies.

Frequently Asked Questions

How many people did Pleo lay off?

Around 50 staff are understood to have been laid off in cuts that took place last week.

Which teams were affected?

The cuts hit Pleo's Offering teams, which span product, tech, design and data, with the majority of those affected in engineering and data roles, including some at senior level.

Why did Pleo make the cuts?

Pleo said the changes are part of a significant transformation designed to strengthen focus, simplify decision-making, and accelerate product delivery, while reflecting the increasing role of new technologies.

Has Pleo cut jobs before?

Yes. The latest cuts follow around 100 layoffs last year and a roughly 15 percent workforce reduction in 2022.

What is Pleo and how big is it?

Pleo is a Copenhagen-based spend management fintech founded in 2015 that employs more than 800 people, has raised more than $430 million, and serves over 40,000 businesses.

Pleo's latest layoffs continue a multi-year restructuring at a fintech whose valuation has fallen sharply from its 2021 peak.