Booktopia, Australia's leading online bookseller, has taken a significant hit with the recent layoff of 165 employees. This move comes in the wake of the company's decision to enter voluntary administration, as reported last week. 

Currently, only 18 employees remain at the company, marking a stark reduction in its workforce, according to news sources. McGrathNicol Restructuring has been appointed as Voluntary Administrators to oversee Booktopia's operations during this challenging period. 

The administrators are actively assessing the company's financial situation while exploring potential avenues for its sale or recapitalisation. Booktopia's decision to downsize follows a series of strategic moves, including the immediate resignation of CEO David Nenke a month ago and a prior restructuring that led to at least 50 job redundancies. 

Peter George, the executive chairman of Booktopia, cited ongoing economic volatility and shifting consumer spending patterns as driving factors behind the restructuring efforts. 

"We are deeply grateful for the dedication and hard work of all our staff, past and present," George emphasized in a statement, acknowledging the impact on the talented individuals affected by the layoffs. 

Financially, Booktopia reported a loss of $16.7 million for the six months ending December 31, a substantial increase from the $3.9 million loss recorded in the previous year. 

The company's financial challenges have been compounded by broader economic uncertainties and evolving market dynamics in the retail sector. As Booktopia navigates through these turbulent times under voluntary administration, stakeholders and industry observers remain vigilant for further developments regarding the company's future and potential pathways to stability. 

The situation underscores the challenges faced by businesses in the current economic climate and highlights the resilience needed to adapt and sustain operations amidst adversity.