Albertus "AJ" Smith (TradeWindow)
NZX-listed trade-tech platform developer TradeWindow is proposing to shed around a third of its staff to help plug a funding gap.
Consultations started today on a plan to cut 25 to 35 positions and reduce spending to a more sustainable level.
TradeWindow is taking action after falling short of target in a $20 million capital raising last month. The company secured just $5.4 million from that share offer.
TradeWindow said the proposed downsizing reflected a more conservative approach to R&D investment in what it described as a challenging funding market for early-stage technology companies.
The company remained in discussions with potential strategic investors and was also exploring alternative funding sources.
The potential changes mostly related to R&D roles and did not impact TradeWindow’s ability to continue to serve current and future customers, the company said.
“We are focused on continuing to meet the needs of our existing customers," TradeWindow CEO AJ Smith said.
"Market demand for TradeWindow’s solutions remains high. We are confident in the future of TradeWindow and continue to invest in a targeted and focused way.
“This is a challenging time for the team at TradeWindow. We are supporting our team members through this difficult time, particularly those impacted by these changes.”
Updated financial projections for the 2024 and 2025 financial years will be provided following the completion of the consultation, which is expected around the end of March, while guidance for 2023 remained as previously announced.
TradeWindow also confirmed it had no exposure to Silicon Valley Bank.
The company, which was backed by ASB Bank, listed on the NZX in 2021 without a public share offer.
TradeWindow's platform helps importers, exporters, freight forwarders and customs brokers working on the frontline of global trade. The platform covers compliance, operations management, data sharing and storage, internal and external stakeholder collaboration and end-to-end supply chain traceability.
