London-based open banking startup TrueLayer has announced that it is cutting off 10% of its staff. Invariably, that means about 45 employees will be asked to leave the company as it currently has 443 employees.
Meanwhile, this figure cuts across its four offices in London, Sydney, Milan, and Dublin. CEO of TrueLayer Francesco Simoneschi cited market conditions as the reason for the layoff. All employees were given the news on Thursday during an all-hands meeting.
Thereafter, he sent out an email to officially inform the employees of the layoff decision by the company.
“Following a process of debate and looking in detail at the different courses of action, it is with great regret that we’ve decided to reduce our headcount by 10%. This is not a decision which we have taken lightly. Nor is it an announcement any CEO or Founder wants to make,” Simoneschi explicitly spelled out.
Notably, the startup had raised its valuation to $1 billion with a $130 million funding round almost a year ago. Trying to explain further the cause of the layoff with its new valuation, the CEO said,
“you may understandably ask what has changed in the past 12 months. We are now operating in a very different context and more challenging market conditions. TrueLayer, while being in a position of strength, is not immune to these broader factors.”
Bearish Market Conditions Led to Massive Layoff
Simoneschi empathized with the affected employees claiming that the decision was the best for TrueLayer’s long-term success.
As a result, every affected individual will be invited for a one-on-one meeting with the leadership team who will walk them through the exit process. Consequently, they will be offered a “salary to cover notice periods and an additional number of months based on the period of service, 3 months of employer pension contributions, extended access to your health insurance, and mental health support.”
Interestingly, this is only one out of the many layoffs which have happened since the inception of the bearish market.
2TM, a Brazillian crypto unicorn recently laid off about 100 employees from its teams. This was just after 2TM sacked 80 employees in June. Crypto exchanges are not left out, Swyftx decided to let go 21% of its staff, leaving 74 people without jobs. All of these layoffs are connected to the dwindling condition of the market.
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