Israel-based crypto broker eToro is laying off six percent of its global workforce, around 100 employees. BTC-ECHO learned this from business circles. When asked, an eToro spokesperson stated:
Given current market conditions, after periods of hyper-growth, it was now necessary to take a balanced approach between growth and profitability. Therefore, we have made the difficult decision to reduce our global headcount by approximately 6 percent to ensure our long-term sustainable growth.
eToro vs. BTC ECHO
The company behind the popular trading app employs around 1,700 people in ten locations around the world, including the US, Israel, and the Federal Republic of Germany. In March 2021, FinTech Acquisition Corp. V. filed a takeover bid for eToro, reported BTC-ECHO. The deal should bring the company’s valuation to $10 billion. But it failed due to lack of approval from the US Securities and Exchange Commission (SEC), with drastic consequences for the FinTech company. Ultimately, the current layoffs are also likely due to the acquisition not happening.
eToro did not reply to BTC-ECHO which branches were most affected by the layoffs and what the situation was at the German location. There was also no comment on whether there would be more staff cuts after the current job cuts. It was only said that they wanted to “support affected employees in their next career steps.”
Falling prices, waves of bankruptcies, debt crises – the ongoing turbulence in the financial markets has been hitting the cryptocurrency sector with full force for weeks. There have also been mass layoffs at other crypto companies like Bitpanda and Crypto.com. Coinbase even laid off 1,100 employees, about 20 percent of its workforce. You can read what BTC-ECHO editor-in-chief Sven Wagenknecht thinks about the wave of layoffs in the crypto space in his commentary on Friday.
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