How Contentful cut global employment costs by 60%
Contentful replaced 4 expensive local entities with Vectis EOR — saving hundreds of thousands annually while actually improving compliance coverage across 12 countries.
Local entities: the hidden cost of global growth
Contentful had built 4 local entities to employ international teams — each requiring accountants, lawyers, annual filings, and director fees. The overhead was eating into budget that should have gone to product development.
- 4 local entities costing $200k+/year in overhead
- Finance team managing complex multi-entity accounting
- Annual compliance filings across 4 jurisdictions
- No cost-efficient path to expand to additional markets
EOR: all the compliance, none of the overhead
Vectis replaced all 4 entities with a single EOR agreement — delivering better compliance coverage at a fraction of the cost while eliminating the entire entity management burden.
- Entity wind-down coordinated with seamless EOR migration
- Single contract replacing 4 entities and local vendors
- Automated annual compliance — no local filings needed
- Cost-efficient expansion available to 180+ countries
"As a mid-stage startup we couldn't afford legal teams in every country. Vectis is our global compliance department. We eliminated 4 expensive entities and actually improved our compliance coverage."
From 4 entities to zero overhead in 10 weeks
Contentful was maintaining 4 local entities for their international teams — each requiring local accountants, lawyers, and annual compliance filings costing $200k+ per year.
Vectis conducted a full cost analysis showing that EOR would save Contentful $480k over 3 years while reducing compliance complexity significantly.
Vectis managed the migration of employees from local entities to EOR simultaneously with entity wind-down — zero employment disruption for 88 employees.
Contentful has eliminated all local entity overhead, saving 60% on international employment costs while actually improving compliance coverage.
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