Wealthsimple is Laying Off 13% of its Workforce
CBC | Tara Deschamps | Jun 15, 2022
Wealthsimple is laying off 13 per cent of its workforce as the financial services company joins the slew of global technology businesses facing “market volatility.”
In a letter sent to staff of the Toronto-based business on Wednesday, chief executive Michael Katchen said 159 of the 1,262 people who work for Wealthsimple will depart the company through the move. He positioned the cuts as part of the fallout from months of seeing the market soar and Wealthsimple grow at an “unprecedented” rate amid the COVID-19 pandemic.
The changing conditions mean the company will now focus more heavily on core businesses, like investing and banking, and products he believes will power financial innovation, like those within the crypto industry. Michael Katchen, CEO, Wealthsimple:
- “Of course volatility works both ways, and we’re seeing the other side of it now as the pandemic market conditions unwind,” Katchen wrote to workers.
- “Many of our clients are living through a period of market uncertainty they’ve never experienced before.”
- Wealthsimple will reduce its investment in other areas like peer-to-peer payments, tax, and merchant services and restructuring teams dedicated to recruiting, marketing, client success and research.
“Today is going to be hard — there’s no getting around it,” he said, in his note. “But our mission has never been more important.”
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