European open banking platform TrueLayer to cut 10% of its workforce

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European open banking platform TrueLayer is set to cut 10% of its workforce, or around 40 employees, due to “difficult market conditions”.

Francesco Simoneschi, CEO of TrueLayer

The news was announced to TrueLayer employees at a company-wide meeting before being posted on the company’s website in the interest of “transparency to our partners, customers and the community. TrueLayer in the broad sense”.

In the message to employees, CEO and co-founder Francesco Simoneschi says the company has seen “significant growth” in payment volumes and customer base over the past 12 months. Despite this, the company is now operating “in a very different context and more challenging market conditions,” adds Simoneschi, and TrueLayer “is not immune to these broader factors.”

“After a process of debate and examining in detail the various courses of action, it is with great regret that we have decided to reduce our workforce by 10%,” he said.

In a “whole organization approach,” Simoneschi says the company looked at the roles most needed to secure TrueLayer’s “pathway to profitability, monetization, and sustainable growth.”

He adds that those affected “will be invited to a one-on-one meeting with a member of the leadership team so that we can explain the next steps in the process and what we will do to support you.”

TrueLayer is the latest fintech to feel the pinch due to continued market volatility in the aftermath of the Covid-19 pandemic.

In August, Australian crypto exchange Swyftx laid off 74 employees – 21% of its workforce – while Canadian growth capital firm Clearco cut 125 jobs as it faces “significant headwinds” in the economy.

In recent months, stock trading app Robinhood announced it would cut 23% of its workforce, digital challenger bank Varo laid off 75 staff to cut costs and Canadian wealth management technology Wealthsimple , lost 12.6% of its workforce citing market volatility.

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Michael C. Sumner