FreshBooks

FreshBooks laid off 140 employees on 2024-10-01.

Toronto-based FinTech firm FreshBooks has laid off approximately 39 employees, representing six percent of its 642-person workforce, as part of a restructuring effort. This marks the company's third round of layoffs in the past year, following a 10 percent reduction eight months prior. Concurrently, FreshBooks is closing its operations in Raleigh, North Carolina, and has seen significant leadership changes, with its president and CEO stepping down and interim co-CEOs appointed. Founder Mike McDerment cited economic challenges, referring to "winter in startup land," while sources indicate the company is shifting focus from international expansion back to the North American market to cut costs and pursue profitability by 2025. The accounting software provider, which serves small and medium-sized businesses, continues to operate as a late-stage startup navigating a difficult financial climate.

Toronto-based accounting software firm FreshBooks has laid off approximately 80 employees, representing 10 percent of its 800-person workforce. This second round of cuts since December is part of a strategic shift away from pursuing an immediate IPO toward achieving profitability by 2025, driven by unpredictable capital markets. The layoffs, announced in early 2023, primarily affected marketing, data, and product teams, including the departure of its CMO. As a late-stage FinTech company serving small-to-medium businesses globally, FreshBooks is now focusing on internal cash flow to fund operations amid broader industry downturns.