E-commerce aggregator SellerX has announced plans to lay off one-fifth of its workforce. This decision will affect 170 employees out of a total of more than 800, as the company moves to reduce costs amid financial pressures.
Germany-Based Aggregator Faces Financial Challenges
SellerX, headquartered in Germany, specializes in acquiring and scaling Amazon brands. The company experienced rapid growth during the COVID-19 pandemic, taking advantage of the surge in online shopping. However, with the reopening of physical stores, many aggregators, including SellerX, have faced significant financial challenges.
Planned Auction Canceled Amid Debt Restructuring
In September 2024, financial institution BlackRock announced that SellerX had defaulted on its financial obligations. BlackRock had extended a loan of half a billion euros to the company. An auction was initially planned to liquidate SellerX’s assets, but the process was canceled as debt restructuring negotiations began. The talks concluded with a debt-to-equity swap, converting outstanding debts into company shares.
170 Employees to Lose Jobs
SellerX’s financial struggles appear to be ongoing. The company will now lay off 170 of its more than 800 employees—equivalent to 20% of its total workforce. CEO Olivier Van Calster stated, “We need to cut costs to achieve profitability.” He also emphasized that BlackRock fully supports the company’s new strategy.
Under this revised strategy, Seller X plans to streamline its operations and refocus on sustainable growth. This will involve downsizing both its workforce and brand portfolio. The company aims to reduce the number of brands it manages from 67 to just 19, marking a significant shift in its business approach.
