Wealthsimple says it is cutting 13% of its workforce as the financial services company faces “market instability”.
In a letter to Toronto-based business staff, CEO Michael Katchon said 159 of the 1,262 people working for Wealthsimple would leave the company through the relocation.
While Kutchen notes that the market has grown and the business has grown at an unprecedented rate amid the pandemic, he says these conditions are now easing and Wealthsimple customers are experiencing a period of market uncertainty they have never experienced before.
Katchen says changing conditions will mean the company will now focus more on core businesses such as investing and banking, and products he believes will fuel financial innovation such as cryptocurrencies.
Wealthsimple will reduce its investments in other areas such as peer-to-peer payments, tax and trade services and restructuring teams dedicated to recruitment, marketing, customer success and research.
Wealthsimple job cuts are coming as global technology companies freeze hiring and making redundancies as they prepare for market adjustments and a possible recession after the pandemic saw a jump in technology stocks.
This report from The Canadian Press was first published on June 15, 2022.
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