WealthTech unicorn Wealthsimple has reportedly cut 12.6% of its workforce due to ?changes in market conditions.strong>
Wealthsimple, which offers an online investing app, has a team of 1,262 people, but 159 of these will now be leaving, according to a report from FinTech Futures.??
The company CEO and co-founder Mike Katchen reportedly made the announcement in an all-hands meeting and explained the reason for the job losses was market volatility.
Katchen explained that the pandemic caused a period of immense volatility with markets crashing and then soaring, causing Wealthsimple to grow at an ?unprecedented rate.However, he stated the pandemic market conditions are unwinding and as a result, Wealthsimple is concentrating resources.
In addition to the redundancies, Wealthsimple is reducing its investment in certain areas, including peer-to-peer payments, tax and merchant services.
Katchen also stated that teams that are not essential to the business in the ?new normal?, will be restructured. This includes recruitment and marketing teams.
Finally, IGM and Canada Life have guaranteed interviews to anyone that has been made redundant.
In a statement, Katchen concluded, ?Id like to express that we owe a debt of gratitude to all those who are leaving. Thank you for helping to make Wealthsimple a great place to work and for helping make a difference in the lives of millions of Canadians.span>
Several FinTechs have hit a troubled time. European buy now, pay later giant Klarna has hit a troubled patch. It was recently reported by Bloomberg that the company valuation could drop from $46bn to $30bn. However, a report from Sifted now claims the FinTech valuation could shrink to $15bn.
In the PropTech sector, a report from CNBC claims Compass is cutting 10% of its workforce and Redfin is cutting 8%.
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