Toronto-based FreshBooks has laid off 10 percent of its employees, BetaKit has learned.
The staff cuts affected approximately 80 members of the accounting software company’s 800-person team, according to a letter obtained by BetaKit that was sent to FreshBooks employees this morning. A source familiar with the company’s operations told BetaKit that these layoffs impact FreshBooks’ marketing, data, and product teams, including CMO Paul Cowan and several directors.
The letter to employees, written by CEO Don Epperson, attributed the cuts to FreshBooks’ need to adjust its funding strategy amid the market downturn. “Ultimately we decided that the capital markets are, for the foreseeable future, too unpredictable to continue to rely on external funding to fuel our growth,” wrote Epperson.
Rather than raise more outside financing, FreshBooks aims to use its current cash flow and debt facility to reach profitability in 2025, as part of a newly approved three-year strategic plan. As Epperson noted, this plan requires the company to reduce its headcount and programmatic spending.