Buy now pay later company Laybuy has completed a strategic review, concluding that “while there was strong interest in Laybuy, a sale or partial sale of the business is not currently in the best interest of shareholders”.

Instead, the company is undertaking a “significant restructure” that will reduce its headcount by one-third.

The company said the staff cuts would not impact the provision of services to merchants or customers, and the significant savings would help the company on its “path to profitability”.

The company also said it was getting on top of fraud losses, which have been a significant problem, especially in its UK business. It will continue to operate in the UK.

Laybuy reported revenue of A$11.3 million in the June quarter, an increase of 9 per cent on the previous corresponding period but down 6.7 per cent on the previous quarter.

Losses as a proportion of gross merchandise value fell from 4.9 per cent in the March quarter to 2.8 per cent in the June 2022 quarter. The company put this down to improved fraud prevention.

It is concentrating on signing up better quality customers. As a result, active customer numbers fell from 931,000 in the March quarter to 918,500 in the June quarter.