Wealthsimple says it is laying off 13% of its workforce as the financial services company faces “market volatility”.
In a letter to Toronto-based company staff, CEO Michael Katchen says 159 of the 1,262 people working for Wealthsimple will leave the company with the move.
While Katchen notes that the market has skyrocketed and business has grown at an unprecedented pace amid the pandemic, he says conditions are now easing and that Wealthsimple customers are experiencing a period of market uncertainty. who had never lived before.
Katchen says the changing conditions will mean the company will now focus more on core businesses, such as investment and banking, and products it believes will drive financial innovation, such as cryptocurrencies.
Wealthsimple will reduce your investment in other areas such as peer payments, taxes and business services, and restructuring equipment dedicated to hiring, marketing, customer success, and research.
Wealthsimple job cuts come as global tech companies freeze hiring and layoffs as they prepare for a market correction and a possible recession after the pandemic saw technology stocks soar.
This report from The Canadian Press was first published on June 15, 2022.