Redbubble, an online marketplace for independent designers, is making 14 per cent of its workforce redundant as part of a cost-cutting program it hopes will return the company to positive cashflow by the end of 2023.
While some retailers are proving immune to the higher interest rate environment, Redbubble released a trading update on Wednesday that suggested consumers were having to make tough choices about where to spend their money amid higher inflation.
The company’s shares plunged on the back of the trading update, falling 11.4 per cent to 50¢ by the close. The business has lost more than 92 per cent of its value since hitting a peak of more than $7 in January 2021. November and December are historically peak trading months for Redbubble in the lead-up to Christmas, but marketplace revenue only increased 3 percent for the quarter compared to the same period last year, following a 5 per cent drop off in the first quarter of the 2023 financial year.