UK financial technology firm GoCardless has announced plans to eliminate approximately 90 positions as part of a strategic restructuring aimed at achieving profitability in the coming financial year. The London-based company, which specializes in bank-to-bank payment solutions, revealed these workforce reductions alongside its latest financial results.
Financial Performance and Restructuring Costs
The company reported a significant increase in employee expenses and restructuring costs, rising by £7.1 million and £5.6 million respectively. A substantial portion of these increased expenses stemmed from the acquisition of Nuapay, which was finalized in September 2024 and fully integrated into GoCardless operations last year.
GoCardless recorded a £4.2 million provision for one-time severance and retention costs, which the company expects to be "materially utilized" during the upcoming financial period. Despite these restructuring charges, the fintech managed to narrow its pre-tax losses to £24.2 million, showing improvement from the previous year's £31.2 million deficit.
Revenue Growth and Transaction Volumes
The company demonstrated strong revenue growth, with total turnover jumping nearly 20 percent to reach £155.5 million, up from £131.3 million in the prior period. This financial improvement occurred alongside remarkable expansion in transaction volumes, which soared to £79.2 billion - representing a 100 percent year-on-year increase.
Even excluding the impact of the Nuapay acquisition, payment volumes still grew by approximately one-third, indicating robust organic growth within the company's core operations. The strategic acquisition significantly bolstered the firm's transaction processing capabilities and market reach.
Path to Profitability
Company directors have projected that GoCardless will become "cash generative" by June 30, 2026, with the financial benefits of the current restructuring expected to materialize in upcoming financial results. The firm anticipates achieving its first profitable year on an adjusted basis during the full 2026 financial year.
Hiroki Takeuchi, co-founder and chief executive of GoCardless, commented on the company's trajectory: "The 2025 results demonstrate strong momentum across our business. Key wins, strategic renewals, and ongoing innovation within our platform fueled our growth and, with disciplined cost control, we're on track for our first profitable year on an adjusted basis in full-year 2026."
Corporate Structure and Acquisition
While headquartered in London, GoCardless maintains international offices in Australia, France, Ireland, Latvia, and the United States, along with a northern operational hub in Leeds. The company's corporate landscape changed significantly last December when it was acquired by Dutch fintech giant Mollie in a deal valued at approximately €1 billion.
This acquisition created a combined entity serving over 350,000 businesses worldwide, positioning the merged organization as a significant player in the global fintech payments landscape. The integration of GoCardless into Mollie's operations represents a strategic consolidation within the competitive financial technology sector.
The workforce reduction announcement comes as many fintech companies face increasing pressure to demonstrate sustainable business models and move toward profitability after years of growth-focused expansion. GoCardless's restructuring reflects this broader industry trend toward financial discipline while maintaining technological innovation and market expansion.
