The UK-based company cut down 71 roles at the end of September 2024, a week before announcing a USD 50 million funding round that lowered its valuation. At the same time, employees have reportedly been summoned to a meeting with roughly two hours warning, where they were informed of the job cuts. Affected staff left the company on the same day, and internal communications put the proportion of employees impacted at around 25%.
TrueLayer also announced important steps in its strategy to chart its development toward profitability, including the process of streamlining operational costs and an overall reduction in headcount, which also took place in September.
TrueLayer represents a company that leverages Open Banking in order to provide payment solutions for clients and partners alike. The most recent job cuts came after a roller-coaster of hiring and attrition for the fintech over the past three years.
According to the company’s 2023 accounts, the headcount fell to a monthly average of 346 in 2023, down from 434 in 2022, when it laid off 10% of staff. This process followed a hiring spree which nearly doubled the number of TrueLayer’s employees from 231 in 2021.
At the same time, efforts to rein in expenses underscore the sector’s overall shift away from a `growth at all costs` mindset that peaked in 2021, when ultra-low interest rates saw multiple investors pour money into loss-making startups promising to optimise financial technology. According to CityAM, TrueLayer is currently an infrastructure business that will focus on spending more funds building a network for the mass adoption of Open Banking in the region of the UK.
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