Open banking provider TrueLayer has reportedly reduced its workforce by 25% as part of a strategic effort to achieve profitability.
Based in London, the company eliminated 71 positions at the end of September, just before announcing a $50 million funding round that resulted in a decrease in its overall valuation. According to a report from City AM, sources close to the situation revealed that employees received a notification about the meeting two hours prior, during which the layoffs were communicated. Those affected left the office later that same day.
Insiders indicated that approximately 25% of the staff were impacted by these cuts. A representative from TrueLayer did not disclose specific details regarding the layoffs but emphasized that the latest funding round represents a “vote of confidence” for the company. They added, “In addition, we’ve initiated crucial steps to navigate our route to profitability, which includes reducing operational costs and workforce size.”
As a result of the funding round, TrueLayer’s valuation dropped by around 30%, removing its status as a ‘unicorn’—a designation previously achieved with over $1 billion valuation during a funding round in 2021.
This recent reduction follows another notable round of layoffs in September 2022, when TrueLayer cut 45 jobs from a workforce of 400.
Despite these challenges, the fintech firm reported a pre-tax loss of £55.6 million for 2023, escalating from a £40.3 million loss in 2022. However, TrueLayer indicated that 2023 marked its strongest year-on-year growth thus far, with gross profit rising significantly from £2.96 million to £7.78 million, while revenue surged from £4.1 million to £12.3 million.