Yet another finance and fintech company will be forced to lay off staff shortly. However, Freetrade, the challenger stock brokerage, wants to change things a bit. More specifically, up to 15% of its staff will be out of a job in the coming weeks as market conditions continue to worsen.
Freetrade Is Axing Many Employees
It is the season during which finance and fintech companies reduce their employee count. Following Klarna and Bolt, it is now time for Freetrade to let up to 15% of its staff go due to market conditions. The challenger stockbroking app will implement these redundancies in the coming weeks, with more details to follow.
The decision is a relatively straightforward one, as Freetrade needs to reduce its costs and extend its cash runway. Considering how the company raised over 30 million GBP in funding not too long ago, one must wonder where things went wrong. However, a spokesperson claims this decision is “from a position of strength”, although some will see things differently.
The internal meeting also highlighted:
“Global stock markets have been falling and funding for businesses like ours has slowed. It’s essential that we focus now, more than ever, on building a sustainable business on a strong financial footing. By taking this difficult step now, we will ensure we can preserve our cash for as long as possible.”
The Freetrade staff has been given a chance to apply for voluntary redundancy. The more people accept this offer, the lower the forced redundancies will be. Some people may be eager to leave a company now, although many other firms struggle in the industry. Finding a new job now might not be as easy as it could or should be, which is always something to consider.