Megaport cuts 35 staff despite revenue growth

In spite of rising revenue and falling losses, data centre connectivity specialist Megaport has announced it will reduce the size of its workforce by around 10 percent.

The company announced full year revenue for 2022 that was up 40 percent to $109.7 million. 

Revenue grew in all regions, with North America the best performer, adding $19.1 million or 49 percent year-on-year to reach $57.8 million.

The Asia Pacific region added 30 percent to hit $33.5 million, and Europe grew by $4.6 million to $18.4 million.

Net losses improved 12 percent year-on-year, from $55 million to $48.5 million.

Its growth has come at a price, however, with employee costs 62 percent higher year-on-year at $68.3 million for 2022.

In the company’s annual report [pdf], it noted that the decision to reduce its staff was made after its June 30 reporting date.

“On July 14 2022, management made the decision to reduce its workforce in order to reduce costs and prepare for rising prices and inflation across the group’s key markets,” the report states.

The decision has already been implemented: “35 positions across all regions of the group were made redundant”, the report noted, at a cost of $1.6 million.

Megaport’s LinkedIn profile puts its headcount at 345, so the redundancies represent about 10 percent of its workforce.