London Open Banking Startup TrueLayer Cuts 10% of Staff

Citing formidable market conditions, London open banking startup TrueLayer — valued at $1 billion last year — is laying off 10% of its staff of approximately 443 employees.

“We are now operating in a very different context and more challenging market conditions. TrueLayer, while being in a position of strength, is not immune to these broader factors,” TrueLayer CEO and co-founder Francesco Simoneschi said in a Friday (Sept. 16) blog post that included the text of an email sent to employees.

He pointed to the many achievements the company made in the past year, including the growth in payment volumes, positive feedback from clients and “enthusiasm for our product roadmap.”

See also: TrueLayer, Thunes Team on Open Banking Payments in Europe, UK

While the announcement of layoffs “may appear counterintuitive,” he said, TrueLayer must deal with the challenges it faces.

“With our focus being firmly on the path to profitability, monetisation, and sustainable growth, it is my responsibility to give the company the maximum amount of time to deliver on our strategy in this changed economic environment,” he wrote.

Affected employees will receive an exit package with salary compensation based on time of service, three months pension, extended access to health insurance and mental health support, per the announcement.

“In approaching this difficult decision, we have been guided by two key principles: do what’s right for TrueLayer’s long-term success and treat our people fairly, with gratitude and respect,” Simoneschi wrote.

See also: Stripe Lays Off Some TaxJar Employees

Simoneschi said the layoffs weren’t limited to one team but spread across the organization with careful consideration made about the roles that would be most critical for the company’s success. They also looked at “opportunities to consolidate and align between teams” and various approaches to boost operational efficiency.

The CEO thanked those employees impacted by the layoff decision and said the company’s future success is also due to the work they put in and as such, they “made changes to our employee options plans for those affected to reflect this, so that TrueLayer’s future growth continues to benefit them, too.”

Co-founded in 2016 by Simoneschi and CTO Luca Martinetti, TrueLayer is a global open banking platform that enables businesses of all sizes across Europe, the UK, and Australia to build better financial experiences. Businesses use TrueLayer to power their payments, access financial insights, and onboard customers.