London-based open banking firm TrueLayer has announced it plans to cut headcount by 10%, according to a blog post published by the company on Friday.
The layoffs were announced during an all-hands meeting on Thursday and re-iterated in the blog post on Friday for “transparency to our partners, customers and wider TrueLayer community,” said Francesco Simoneschi, CEO and co-founder of TrueLayer.
“You may understandably ask what has changed in the past twelve months. We are now operating in a very different context and more challenging market conditions,” said Simoneschi in the post. “TrueLayer, while being in a position of strength, is not immune to these broader factors.”
What is TrueLayer?
TrueLayer provides tools to enable companies to take advantage of the UK’s open banking regulatory framework. The regulation enables authorized third parties to access data held by banks at the request of the customers who own that data. Many fintech firms leverage this framework to power their services.
Crypto companies like MoonPay and Ramp have teamed up with TrueLayer to enable crypto purchases through open banking. Other customers of TrueLayer include Revolut, Freetrade and Cazoo, according to their website.
TrueLayer closed a $130 million fundraise led by Tiger Global Management in September 2021. The raise brought TrueLayer’s valuation above $1 billion, providing the startup with “unicorn” status.
What does this mean for employees?
Staff affected will be invited to a one-to-one meeting with a member of leadership to explain the next steps, according to the blog post.
The exit package will include salary to cover notice periods and an additional number of months based on period of service, three months of employer pension contributions extended access to health insurance and mental health support, the post said.
“Our aim throughout is to treat you with the gratitude, dignity, fairness and respect that you deserve,” said Simoneschi in the post.
Impacted employees will also be connected to other job opportunities through the TrueLayer network.
“We are leveraging our network to fast track this process, and have also arranged for opt-in outplacement support including interview preparation, CV review and coaching to be available,” Simoneschi said.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.