The e-commerce giant Naspers, which has its headquarters in South Africa, and the European subsidiary of its parent company plan to lay off thirty percent of their workers. “We are reacting to a changing macro environment and have been working for some time to enhance our cost structures,” the company Prosus said in a statement that was made public.
During an interview, Bob van Dijk, the Chief Executive Officer of Prosus, stated that the reduction in staff will take place over the course of the next year and will impact around 15 different sites. Johannesburg and Amsterdam house the majority of the company’s corporate headquarters.
Read also: Luno to lay off 35% of its workforce
The truth is that the macro environment has grown much more challenging and has undergone significant shifts recently. This also indicates that there has been a significant change in the cost of capital because interest rates and risk premiums have both increased,” he went on to say.
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The number of people working at Naspers and Prosus was approximately 30,000 as of March 2022. It is estimated that approximately 9,000 workers could be made redundant as a result of this particular round of layoffs.
According to Van Dijk, Prosus will also make an effort to reduce expenses at the more than 80 businesses in which it has invested, but these initiatives will take place on different timescales and dimensions.
Investment With Other Companies
Prosus owns or has investments in a number of companies, including OLX, Property24, Udemy, PayU, AutoTrader, and DeliveryHero, while Naspers owns three major entities: Prosus, Takealot, and Media24. Prosus is owned by Naspers.
This is the most recent round of layoffs that have been disclosed over the course of the past couple of months. Both Google and Microsoft have announced plans to let go of personnel in the range of 10,000 and 12,000, respectively.
The Naspers share price in Johannesburg finished the day down 1.7%, while the Prosus share price in Amsterdam was down 0.2% at 5:15 p.m. on Wednesday.
About Naspers
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About Prosus
Prosus N.V., also known simply as Prosus, is a global investment organization that invests and operates in a variety of different markets and industries that have the potential for long-term growth. It is one of the largest investors in technology on the whole wide planet.