Eventbrite reinforces its presence in Spain, as the ticketing giant announces plans to open its first European development centre in Madrid.
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US-based event and ticketing platform Eventbrite has reduced its workforce almost by half in a bid to cut costs during the Covid-19 pandemic
By IQ on 09 Apr 2020
Event management and ticketing company Eventbrite is laying of 45% of its staff – reportedly between 450 and 500 people – as it implements widespread cost-saving measures.
The workforce reduction was announced as part of a cost-cutting plan, with the company looking to reduce annual expenses by at least $100 million.
The move follows layoffs at other companies in the entertainment industry, including Paradigm and WME parent company Endeavor.
Eventbrite expects to spend between $7m and $10m in severance payments, with an additional $3 to $4m in charges related to facilities and fixed assets.
Reports suggest that Eventbrite’s music division has been particularly affected by the cuts.
“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,” says Eventbrite co-founder and CEO Julia Hartz.
“The Covid-19 pandemic has caused massive disruption to live entertainment 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.”
Eventbrite shares (EB) have dropped by just over 66% since the end of February, falling from $21.76 to $7.36. The company’s share price rose by more than 10% during trading yesterday (8 March), following the news of layoffs.
Shares in Eventbrite have been in decline since March 2019, as the company continued to work on the integration of ticketing platform Ticketfly, which it acquired in 2017 for $200m.
The company’s 2019 financial report saw net revenue increase by 12% from the year before to $327m and losses of $69m, an increase of over $6m from 2018.
Photo: Stefan Wieland/Wikimedia Commons (CC BY-SA 3.0) (cropped)
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