eToro trading app lays off 100 employees

The Israel-based crypto broker eToro is laying off six percent of its global workforce, approximately 100 employees. BTC-ECHO learned this from company circles. When asked, a spokesman for eToro:

Given the current market conditions, after periods of hyper-growth, it was now necessary to adopt a balanced approach between growth and profitability. We have therefore made the difficult decision to reduce our global headcount by approximately 6 percent to ensure our sustainable, long-term growth.

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The company behind the popular trading app employs around 1,700 people at ten locations worldwide, including in the USA, Israel and the Federal Republic of Germany. In March 2021, FinTech Acquisition Corp. V. submitted a takeover bid for eToro, BTC-ECHO reported. The deal should bring the company’s valuation to $10 billion. But it fell through due to a lack of approval from the US Securities and Exchange Commission (SEC) – with drastic consequences for the FinTech company. Ultimately, the current redundancies are probably also due to the fact that the acquisition did not come about.

eToro did not answer BTC-ECHO which branches were hit the hardest by the layoffs and what the situation was about the German location. There was also no comment on whether there would be further staff cuts after the current job cuts. It was only said that they wanted to “support the affected employees with their next career steps”.

Falling prices, waves of bankruptcies, debt crises: The ongoing turbulence on the financial markets has been hitting the crypto sector with full force for weeks. There have also been mass layoffs at other crypto companies such as Bitpanda and Crypto.com. Coinbase even fired 1,100 employees, around 20 percent of its workforce. You can read what BTC-ECHO editor-in-chief Sven Wagenknecht thinks about the wave of layoffs in crypto space in his Friday commentary.