Westfield’s tech spinoff OneMarket announces staff cuts as cash pressures mount
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The new boss at listed tech startup OneMarket has completed a strategic review of the company’s operations.
And Joe Polverari’s preliminary findings put two outcomes at the top of the agenda: refine the company’s product portfolio, and stop spending so much money.
As part of its efforts to reign in cash outflows, OneMarket said it will carry out a “rationalisation of the work force”.
A OneMarket spokesperson confirmed to Stockhead that the rationalisation “will result in a reduction in the number of staff at the company”.
The spokersperson was unable to comment on the exact number of job cuts.
Share in the company are down more than two per cent in midday trade at 70 cents.
OneMarket (ASX:OMN) first listed in May last year at a value of $1.50 per share. It was initially established within the tech research hub of shopping centre giant Westfield.
Following the sale of its global shopping centre empire in 2017, Westfield listed OneMarket with a generous headstart of $160 million in cash.
But it has yet to generate much revenue, with customer receipts of $US2.4 million in the December quarter against operating outflow of over $US15m (including $8.4m in staff costs).
The company was set up as a data play to help bricks & mortar retailers leverage their customer data to compete against online rivals.
In January, it said cash outflows for the March quarter “are expected to increase substantially from the last quarter” due to staff bonus payments and one-time outflows related to past acquisitions.
As a result of the cuts, OneMarket says it will now have enough cash to finance its operations until late-2021 — a 12-month extension from its previous forecast.
Despite its ASX-listing, the company’s operations are based in San Francisco and the majority of its products are targeted at US and UK markets.
Its product offerings include Shopper Exchange, an automated platform which aims to “deepen collaboration with vendors” by using in-store customer data to improve advertising effectiveness for specific brands.