Fears of inflation.
Data center connectivity expert Megaport has said it will reduce the size of its personnel by roughly 10% despite increased revenue and decreasing losses.
The corporation reported that its total sales for 2022 increased by 40% to $109.7 million.
All geographical areas saw an increase in revenue, with North America having the strongest results, increasing $19.1 million or 49 percent yearly to reach $57.8 million.
Asia Pacific increased by 30% to reach $33.5 million, and Europe increased by $4.6 million to reach $18.4 million.
Net losses decreased by 12 percent from $55 million to $48.5 million over the previous year.
However, the cost of hiring new employees has increased, by 62 percent annually, to $68.3 million by 2022.
The decision to cut workers was made after its June 30 reporting deadline, the company stated in its annual report (pdf).
According to the study, "management decided to cut its personnel on July 14, 2022 to reduce expenses and prepare for rising prices and inflation throughout the group's core markets."
The article noted that the decision had already been carried out, saving the business $1.6 million by eliminating 35 posts from all locations.
According to Megaport's LinkedIn site, it has 345 employees, therefore the layoffs affect around 10% of the company's staff.
