Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Payfit, a French start-up specialised in the digitalisation and simplification of payroll and HR management for small and medium enterprises, has announced a European wide reorganisation with 200 job cuts, about 20% of its workforce, including about 100 job cuts in France.
The management has implemented a Collective Dismissal Agreement for about a hundred people, including a large number of salespeople. This mechanism, introduced by the 2017 reform of the labour code, makes it possible to cut jobs on a voluntary basis without resorting to economic layoffs.
The management explains that it is offering 'a financial package' and help 'to find another job or to start a project'. This reduction in staff is not linked to a lack of cash, as the start-up raised €254 million in early 2022. But the company had structured itself with a view to hypergrowth. 'Now that our growth prospects are weaker,' explains the management, 'we have to adapt' and make the company sustainable.
A previous announcement has been recorded in the ERM database in January 2021 with 400 job creations by the end of 2022 (FR-Payfit-2021).
Eurofound (2023), Payfit, Internal restructuring in France, factsheet number 108638, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/108638.