jobandtalent.comthe temporary work company that works through a mobile application, it has laid off a third of its staffgoing from 350 to 230 employees, after an adjustment that began in September and ended last week.
The company had received 85 million dollars (76 million euros) in six rounds of financing, of which 81 million were signed between 2014 and 2016. The last round, worth 42 million, was the largest operation of its kind in Spain, and it had the participation of such outstanding funds and investors as Atomico (Skype), FJ Labs, Adeyemi Ajao, and Steve Goodman.
The cause of the layoffs at Jobandtalent.com
The , founded by Juan Urdiales and Felipe Navío in 2009justifies the layoffs by the need to achieve profitability in the shortest possible time, under pressure from investors who prefer to obtain a return on their investments before sacrificing it to growth of the platform, informed sources from the company itself.
Most of the laid off technical staff and programming engineers, who had a fixed contract. Many of them had been recruited from other firms. The bulk of the outflows have occurred in Spain, where the firm is based (Madrid), although it also works in Colombia, Mexico and .
Cornerjob and Jobtoday, keys to changing the business model
The downsizing of the workforce began in September, coinciding with the business model change from the typical traditional website of a temporary employment company to a firm specializing in low-skilled jobs (hospitality, drivers, etc.), which works through the apps of the mobile.
Its managers defend that, since this change in model began, income has shot up 30% monthly, and they hope to reach financial equilibrium (break even) in the first months of 2017… although the company has not provided income or results data. The change in the business model was prompted by strong competition from apps like or .
“It was a mistake and I am responsible. The growth was greater than we should have had, but the situation was also very concrete, of brutal competition and a change of model»recognized Juan Urdiales, co-founder of the company,
Jobandtalent.com’s source of income goes through advertising, training and recruitment fees
Its business model focuses on advertising. Companies can either put their free job offers o They are offered the opportunity to promote their brand and the way they work through company pages. These packages cost between €6,000 and €30,000 per year, and allow companies to reach a broader segment of workers on the platform. these ads They account for 30% of the company’s revenue.
Given all the information the company is supposed to have about its users (salary, industry, etc) Jobandtalent says it can help traditional advertisers reach target audiences more efficiently. This is a programmatic or auction-based purchase.
On the other hand, the company also enters through training. jobandtalent.com recommends certain types of training programs to its users based on their professional profile and the type of job offers they tend to address representing 40% of the company’s revenue. Its clients include large institutions such as the Business Institute and other smaller programs, which pay Jobandtalent for lead generated.
Since September 2015 the company is testing with SMEs a new model, which they call transactional, which forces companies to pay between €49 and €199 per worker hired through the platform. To ensure that Jobandtalent is aware of these hires, it offers an incentive package to workers, which includes 250 if they open an account at BBVA, medical insurance, a one-year subscription to Pepephone and other benefits.
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