Marqeta, which said earlier this month that it would reduce its employee workforce by 15%, or about 150 employees, has been trying to streamline and right-size the company in the interest of producing profits.

The fintech will save between $40 million and $45 million on an annual operating expense basis by way of the cost reduction plan to be implemented in the second quarter, Marqeta’s Chief Financial Officer Mike Milotich said during a first-quarter earnings call with analysts to discuss the results.

The changes come as the company operates under the leadership of a new CEO, Simon Khalaf, who took over from founder Jason Gardner in January.

Even though the company has made the decision to “downscale the Australia operation,” it will still serve all its customers operating in that country, including buy now, pay later company Afterpay, and offer to service those seeking to launch operations in the region, Robinson said.

Marqeta had its first transactions in the region in 2020, before it had any workers on the ground there, and hired Currie to open its facilities there the following year, Robinson said. 

The company isn’t shutting down any other international operations at the moment. Currently, it has a presence in North America, including Canada, and in Europe.

By Lynne Marek on May 30, 2023
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