Shares of BigCommerce Holdings took a hit on Wednesday as the company revealed plans to restructure and reduce its workforce by approximately 7%. The Austin, Texas-based e-commerce platform experienced a 12% drop in stock prices, reaching $8.85 during midday trading. Despite this setback, shares have seen a modest 0.5% increase since the beginning of the year.
Effective immediately, the restructuring aims to streamline operations and drive future profit growth. BigCommerce incurred an expense of $5.5 million during the third quarter as a result of this restructuring initiative. CEO Brent Bellm believes that these changes will allow the company to refine its enterprise go-to-market strategy.
In the third quarter, BigCommerce reported a loss of $20.3 million, or 27 cents per share. This is a notable improvement from the previous year's loss of $30.3 million, or 41 cents per share. Analysts surveyed by FactSet projected a loss of 19 cents per share.
While the company's revenue increased by 8% to $78 million, it fell just short of analysts' forecasts of $78.1 million.