The Sezzle Inc (ASX: SZL) share price is on fire today. Technology shares are in the green, and the company had a positive update for the market.
The buy now, pay later (BNPL) share is currently trading at $1.58, a 7.85% gain. In comparison, the S&P/ASX All Technology Index (ASX: XTX) is also up 3.37% at the time of writing.
Let's take a look at what's happening today.
Workforce reduction
The Sezzle share price is soaring after the company revealed today it will carry out a workforce reduction. The goal is to position the company for long-term growth and on the road to profit.
The company estimates these cuts will lead to $10 million in cost savings per year. In North America, 20% of positions will be lost.
Commenting on the change, CEO and executive chair Charlie Youakim said:
Sezzle has experienced significant growth in its history and is now at an important juncture, as we look to take decisive steps toward profitability and free cash flow.
Sezzle's growth prospects remain unchanged, and these actions position the company to maximize its long term success. These decisions are not easily made as we greatly value our team members. We thank our team for their efforts during this process.
In late February, Sezzle agreed to a takeover proposal from Zip. The Sezzle and Zip boards of directors have recommended the proposed transaction.
If the deal is approved, Sezzle shareholders would receive 0.98 Zip shares for each Sezzle share owned.
The Sezzle share price may be up today, but it is not the only BNPL share on the rise.
The Zip Co Ltd (ASX: Z1P) share price is also jumping 7.36% today, while Block Inc CDI (ASX: SQ2) shares are surging 8.22%.
Sezzle share price snapshot
The Sezzle share price has descended 80% in a year, while it has lost 48% this year to date. It is also down 25% over the past month. For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned around 6% over the past year.
The company has a market capitalisation of about $308 million.
