CommerceHub job cuts to impact Capital Region
COLONIE — Three months after buying up a similar company, CommerceHub, an e-commerce firm, this week announced layoffs of 371 employees globally.
Some of the layoffs are in the Capital Region while others are in different locations.
The precise number of job losses locally was not immediately available and many of the actual layoff dates will be in May and August.
CommerceHub provides cloud-based software that helps connect buyers and sellers and streamlines supply chains. The company as of last spring had about 400 employees total.
It purchased ChannelAdvisor, an 800-employee company, which helps retailers optimize their online businesses.
“We announced a difficult decision to reduce our workforce across both CommerceHub and ChannelAdvisor by 371 individuals globally, offset by approximately 100 net new jobs in Europe to balance our workforce between the U.S. and Europe in line with the needs of the business,” a company spokesperson said in a prepared statement.
“Moving the business forward after the acquisition brings a lot of opportunity, but with that comes the unfortunate reality that across the two organizations, we will inevitably have redundancies and areas that need to be realigned, with consideration to an uncertain global economic outlook. This was an extensive, thoughtful, and difficult process, and we recognize this will be a really tough time for our colleagues impacted and we’re committed to supporting them throughout this process.”
CommerceHub purchased Channel Advisor, for $23.10-per-share, a 57 percent premium, or $635 million according to prior reports.
CommerceHub is owned by private equity firms GTCR and Sycamore Partners.
In December 2021, CommerceHub moved its headquarters from the Albany Nanotech center to the New York State United Teachers building on Route 7 in Latham.
Around the time of the move, CommerceHub received a major investment from its private equity owners.
Last year, the company hired a new CEO, Brian Dove, who has worked at Microsoft and Amazon.
Many of CommerceHub’s employees globally are said to be working from home, a trend that started and continued with the COVID-19 epidemic.
rkarlin@timesunion.com • 518-454-5758 • @RickKarlinTU
