French Payment Firm, Worldline, to Cut 1400 Jobs Amid Cost Reduction Efforts

French payments giant, Worldline, has announced that it will be cutting approximately 1400 jobs, equivalent to eight percent of its workforce. This is part of a cost reduction programme, known as the Power24 plan.

Power24 Plan and Its Financial Implications

The Power24 plan is expected to cost around €250 million. However, it is projected to deliver a €200 million run-rate cash costs savings from 2025, according to the company.

Previous Challenges for Worldline

Worldline’s share price experienced a significant drop last October. This was due to a warning from the firm about a deteriorating sales outlook and the end of various merchant relationships, triggered by rising rates of cyber crime. The company also stated that macroeconomic challenges were beginning to influence some of its significant markets, notably Germany, where a slowdown has disrupted consumer spending patterns.

Recent Boost from Crédit Agricole Investment

Despite these challenges, the firm received some positive news in January. Crédit Agricole, a major French bank, acquired a seven percent stake in Worldline, providing a much-needed boost to the company.