New Work Bundle
How does New Work SE operate?
New Work SE is a prominent technology firm focused on professional networking and recruitment, particularly in German-speaking markets. It leverages platforms like XING and kununu to connect professionals and aid businesses in talent acquisition.
The company is strategically repositioning XING to prioritize employer access to talent, adapting to market dynamics. This pivot is supported by a substantial user base, with XING boasting 22.5 million members in the first half of 2024.
New Work SE generates revenue through various streams, including B2B solutions for recruitment and employer branding, alongside B2C offerings. The company's strategic adjustments, such as workforce reductions and sales team restructuring, aim to enhance efficiency and focus its market approach. A deeper dive into its operations reveals a commitment to navigating the evolving digital work environment, with a New Work PESTEL Analysis offering further insight into its strategic context.
What Are the Key Operations Driving New Work’s Success?
The New Work Company model is built around creating and delivering value through a comprehensive ecosystem for professional growth and talent acquisition, primarily within the DACH region. Its core operations are driven by two key brands: XING, a professional social network now focused on job opportunities, and kununu, a leading platform for employer reviews.
Value Proposition for Professionals
For individuals, XING offers tools for networking, job searching, and career development. Kununu provides transparent insights into company cultures, working conditions, and salary data, enabling informed career decisions.
Value Proposition for Businesses
Businesses benefit from critical HR solutions, including e-recruiting tools, employer branding services, and talent management solutions, facilitating the attraction and hiring of suitable talent.
Operational Backbone
Core operations involve continuous technology development for platform enhancement, advanced data analytics for matching job seekers with employers, and robust sales channels for B2B services.
Supply Chain and Partnerships
The company's supply chain is data-centric, relying on technology infrastructure and human capital in software development and sales. Partnerships, such as those leveraging XING's network for major corporations, extend its reach.
Market Differentiation and Customer Benefits
The company's uniqueness stems from its deep entrenchment and specialized focus on the German-speaking market, offering localized insights and a strong network effect that differentiates it from global competitors. This translates into tangible customer benefits by providing a trusted platform for career progression for individuals and an efficient conduit for talent acquisition and employer branding for businesses.
- Facilitates professional networking and career advancement.
- Provides transparent insights into company cultures and salaries.
- Offers efficient talent acquisition and employer branding solutions for businesses.
- Leverages a strong network effect within the DACH region.
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How Does New Work Make Money?
The company's revenue generation is primarily structured around three key segments: HR Solutions & Talent Access, B2C, and B2B Marketing Solutions. A significant strategic pivot towards positioning XING as a dedicated jobs network has placed a stronger emphasis on monetizing talent access within the HR Solutions & Talent Access segment.
HR Solutions & Talent Access
This segment, the largest revenue contributor, generated €98.6 million in the first half of 2024. It encompasses revenue from job postings, talent search tools, and employer branding solutions offered to businesses.
B2C Segment
Revenue from the B2C segment, primarily XING Premium memberships, saw an anticipated 18 percent decrease, reaching €31.1 million in the first half of 2024. This decline aligns with the company's strategic shift away from direct B2C monetization.
B2B Marketing Solutions
The B2B Marketing Solutions segment experienced the most significant revenue drop, decreasing by 38 percent to €4.0 million. This downturn is largely attributed to a general reduction in advertising budgets within Germany.
Monetization Strategies
Innovative monetization strategies include tiered pricing for B2B e-recruiting tools, offering varied access levels and features for recruiters and companies.
Strategic Focus Shift
While B2C premium memberships are being de-emphasized, the platform's value is now centered on its role as a conduit for employers to access talent, shifting monetization towards the B2B sector.
Financial Outlook
The company's financial guidance for 2024 projects a pro forma EBITDA in the range of €55 million to €65 million, reflecting its strategic adjustments and market conditions.
The company's strategic realignment, particularly the repositioning of XING as a jobs network, directly influences its revenue streams and monetization strategies. The primary focus is now on monetizing talent access through the HR Solutions & Talent Access segment. This involves offering companies tools and services to find and recruit suitable candidates, a shift from earlier models that placed more emphasis on direct B2C user monetization. This approach aims to leverage the platform's extensive professional network for B2B recruitment services. Understanding this Revenue Streams & Business Model of New Work is crucial for grasping the company's operational direction and its adaptation to market demands. The company's financial performance in the first half of 2024, with a decrease in the HR Solutions & Talent Access segment due to a weaker labor market and the discontinuation of certain products, highlights the dynamic nature of the recruitment industry and the company's efforts to navigate these challenges.
Key Revenue Drivers and Strategic Adjustments
The company's revenue is predominantly generated through its HR Solutions & Talent Access segment, which includes services for job postings, talent search, and employer branding. This segment is central to the New Work Company model, emphasizing the facilitation of connections between employers and potential employees.
- HR Solutions & Talent Access: Contributed €98.6 million in H1 2024, despite an 8% year-on-year decrease.
- B2C Segment: Generated €31.1 million in H1 2024, reflecting a strategic move away from direct B2C monetization.
- B2B Marketing Solutions: Recorded €4.0 million in H1 2024, impacted by reduced advertising spending.
- Monetization Focus: Shifting towards B2B services, particularly talent access, leveraging the XING platform.
- Tiered Pricing: Employed for B2B e-recruiting tools to cater to diverse client needs.
- Financial Guidance: Anticipates pro forma EBITDA between €55 million and €65 million for 2024.
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Which Strategic Decisions Have Shaped New Work’s Business Model?
The company's journey has been marked by significant strategic decisions and acquisitions, notably the 2013 purchase of kununu. This move was instrumental in shaping its current identity as a comprehensive platform for both professional networking and employer insights within the DACH region. A more recent strategic adjustment involved a restructuring announced in January 2024, which included workforce reductions and sales team streamlining to focus on core brands amid anticipated economic challenges.
Key Milestones and Acquisitions
The acquisition of kununu in 2013 was a pivotal moment, expanding the company's offerings beyond professional networking to include valuable employer insights. This integration significantly enhanced its market position in the DACH region.
Strategic Repositioning and Investment
A key strategic shift involves repositioning the primary platform from a general professional network to a dedicated jobs network. Monetization is increasingly driven by HR Solutions, supported by substantial marketing investments, including its largest advertising campaign to date.
Restructuring for Future Focus
In January 2024, a significant restructuring was implemented, involving approximately 400 job reductions and streamlining the central sales team. This was a proactive measure to adapt to anticipated economic shifts and a weaker labor market, sharpening the focus on the XING and kununu brands.
Competitive Edge and Market Position
The company's competitive advantage lies in its strong brand recognition and established network effects within the German-speaking market, positioning it as a leading recruiting partner. This specialized focus provides a distinct advantage over broader global competitors.
Unique Value Proposition
The company offers unique and authentic employer insights through kununu, which had 11.7 million 'Workplace Insights' in H1 2024. Additionally, its 2025 Gehaltscheck provides over 800,000 salary data points, fostering transparency that attracts both job seekers and employers.
- Focus on the DACH region's specific labor market needs.
- Leveraging AI in recruitment processes to enhance matching capabilities.
- Adapting to evolving market dynamics through data-driven strategies.
- Providing unparalleled transparency in employer and salary information.
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How Is New Work Positioning Itself for Continued Success?
New Work SE maintains a significant, though specialized, position in the DACH region's professional networking and recruitment sector, primarily contending with global competitor LinkedIn. While LinkedIn boasts broader international reach, New Work SE's XING and kununu brands are deeply integrated into the German-speaking market, leveraging localized content and cultural understanding to solidify their leadership as a key recruiting partner.
Industry Position
New Work SE is a leading player in the DACH region's professional networking and recruitment industry. Its XING platform had 22.5 million members in H1 2024, with 13.2 million monthly active users in the EU from August 2024 to January 2025. Kununu contributes significantly with 11.7 million Workplace Insights, offering unique market transparency.
Key Risks
The company faces risks from intense competition, particularly from global platforms, and labor market volatility. The HR Solutions & Talent Access segment saw an 8 percent revenue decline in H1 2024 due to labor market weakness. Regulatory changes, such as GDPR, and potential technological disruption from AI also present challenges.
Strategic Initiatives
New Work SE is repositioning XING as a jobs network to improve employer talent access. Investments in marketing for both XING and kununu are increasing to strengthen market presence. The company is also undergoing a corporate structure change, becoming a wholly-owned subsidiary of Burda Digital SE following a squeeze-out request.
Future Outlook
The future focus is on deepening engagement in the B2B e-recruiting market and leveraging strong DACH brand equity. The company aims to enhance platforms with features aligned with the 'New Work' paradigm. New Work SE reaffirmed its pro forma EBITDA forecast of €55-65 million for 2024.
Key Developments and Strategic Direction
Recent leadership transitions include Henning Rönneberg taking over as CEO in June 2025. The company's strategic direction emphasizes sustained revenue generation by focusing on the B2B e-recruiting market and enhancing its platforms to meet evolving demands. This approach aims to solidify its position and adapt to the changing landscape of work, building on its established presence, which can be further understood by examining the Competitors Landscape of New Work.
- Repositioning XING as a dedicated jobs network.
- Increased marketing investments for XING and kununu.
- Transition to a wholly-owned subsidiary of Burda Digital SE.
- Leadership change with a new CEO appointed in June 2025.
- Continued focus on the B2B e-recruiting market for revenue growth.
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