The layoffs trend is continuing into the final month of 2023. Specifically, financial operations software company Bill.com (NYSE: BILL) has announced that it plans to trim its workforce by 15% and close its office in Sydney, Australia. According to reports, “this strategic move is aimed at enhancing the profitability of its core business by reallocating resources to key priorities serving small and mid-size businesses.”
When a company implements job cuts, it is often interpreted as a distress signal. But in this case, news of the Bill.com layoffs hasn’t pushed shares down. On the contrary, BILL stock has been rising today and isn’t showing signs of a slowdown.
Does this mean that the upcoming layoffs won’t have a negative impact on BILL stock moving forward? Let’s take a closer look at the Bill.com layoffs.
What to Know About the Bill.com Layoffs
As noted, BILL stock has been performing well today, even as bad news continues to trend. As of this writing, shares are up about 1%. Despite losing some momentum from earlier, the stock appears to be on an upward trajectory still, indicating that shares could easily keep rising. Overall, it has also been excellent month for BILL stock, which has risen more than 10% over that period despite a less than favorable market.
Bill.com hasn’t provided too many details on its upcoming job cuts yet, including which divisions will be most impacted by the move. Still, it’s clear that the company is focused on ushering in a turnaround in the new year. As Investing.com reports:
“The restructuring is expected to incur charges of $29 million to $35 million, primarily consisting of cash expenditures for severance payments, employee benefits, and related costs.”
This decision isn’t coming a moment too soon, either. Despite the recent growth, BILL stock has still fallen considerably over the past six months. The Bill.com layoffs may be the first step in turning over a new leaf, something the company needs to do if it wants to make up lost ground.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.