eToro Is Reducing Its Global Workforce by Approximately 6 Percent

Following the termination of the SPAC merger deal, eToro is expected to cut its global workforce by approximately 6%. It has been reported that approximately 100 employees will be laid off, 55 of them in Israel.

eToro is joining other financial companies that reduced their workforce in the past few months. eToro is pursuing an alternative approach, the company is holding negotiations for a private funding round Funding Round Startups look to raise capital can participate in a funding round. These refers to the various rounds of funding that occur upon proof of concept, customer base growth, and the probability of success. While they are various types of funding rounds, the most commonly seen in startups include the following funding rounds: Seed, Series A Fundraising, Series B Fundraising, and Series C Fundraising. In order for a funding round to take place, a valuation must be performed by analysts for the business Startups look to raise capital can participate in a funding round. These refers to the various rounds of funding that occur upon proof of concept, customer base growth, and the probability of success. While they are various types of funding rounds, the most commonly seen in startups include the following funding rounds: Seed, Series A Fundraising, Series B Fundraising, and Series C Fundraising. In order for a funding round to take place, a valuation must be performed by analysts for the business Read this Term according to recent reports.

It has been estimated that the new funding round will range between $800 million and $1 billion at a $5 billion valuation. In March 2021 when the merge was announced the company's valuation was $10.3 billion.

eToro's Response to the Layoffs

Yoni Assia, eToro's CEO and Co-Founder said: "Due to the current market conditions and after a period of accelerated growth, we decided to take in the current period a more balanced approach between growth and profitability.

“As a result, we made a difficult decision to cut our workforce in order to ensure long-term sustainable growth.”

We have reached out to eToro for clarification and received the following:

“In light of current market conditions, we have been looking closely at how we manage our costs. After a period of hyper growth, it is now necessary to take a more balanced approach between growth and profitability.

"We have, therefore, taken the difficult decision to reduce our global headcount by approximately 6% to help ensure our sustainable long-term growth. ​We will provide assistance to the ​​employees leaving us, to support them in their next steps of their career."

“Over the past 15 years, eToro has weathered many market cycles, emerging stronger from the experience. Despite the current headwinds, our underlying business remains healthy, our balance sheet is strong, and we are confident in our long-term growth strategy.”

Another Crypto Exchange Reduced its Workforce

Bullish.com, a crypto exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term for institutional clients that is regulated by the Gibraltar Financial Services Commission, has laid off less than 30 of its staff. Additionally, Bullish.com is a subsidiary of block.one that received $10 billion in funding.

While a downturn in the crypto markets seems the main factor in trimming the workforce, many companies are concerned with a potential recession in the United States (which will spill over to other regions).

These are precautionary measures in an event of a global recession that may or may not take place at the beginning of 2023.