21 Buttons to cut jobs in cost-saving drive
21 Buttons, the Spanish startup connecting social media with ecommerce, has announced plans to trim its 170-strong workforce. It is understood that the job cuts come as part of a cost-saving drive and a shift towards a new business model.
Staff at the business have already been informed of the decision, which will see “dozens of redundancies” take place over the next few weeks, Spanish newspaper La Informacion reported on Tuesday. 21 Buttons refused to respond to a request for comment from FashionNetwork.com.
The planned job cuts come as 21 Buttons prepares to change its business model. Currently based on affiliate marketing, where the startup charges a commission for every transaction that takes place on its platform, the company is considering new income streams such as a subscription shopping service like the one from Spanish company Lookiero.
The company does not disclose the details of its financial performance, but the latest accounts submitted with Spain’s Central Mercantile Register show it made revenues of 33,000 euros in 2017.
The growing startup announced in May its launch in six more countries, further growing its presence across Europe, South America and Russia. The company says it has over 10 million users and attracts 22 million annual visits. The expansion is partly funded by a recent funding round of 14.5 million euros led by Idinvest Partners with the participation of Kibo Ventures, Breega, Samaipata, JME VC, 360 Capital Partners and Sabadell VC.
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